• Regarding parents give money to every year to me as a son and tax implication

1) how much cash parents can give as gift to there adult children 2). is there any gift deed required to be made, 3) gift deed compulsory registered to registry office or just performa on bond paper with doner signature and witness signature. 
 
4) if these money transfer show as a loan any documentation required for that.5) Is it compulsory loan interest give to parents.
Asked 2 years ago in Property Law
Religion: Hindu

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15 Answers

As much they want to.

Not for movable assets.

Registration mandatory if gift of immovable property.

Not loan but borrowing without interest.

Yogendra Singh Rajawat
Advocate, Jaipur
21452 Answers
31 Consultations

4.4 on 5.0

Hello there,

the question is a little bit confusing;

what i could get from the question that .

1. you receive money from your parents on yearly basis.

2. if you receive money, does it require any gift deed or not.

3. if yes, is it required to be registered or not.

 

if this is the question .

 

than,

Dear, 

the parents or the son can give any sum to each other,

to my understanding, the tax liability remains with the person who is transferring the amount and there is not reason to execute any gift deed in this regard as such..

for any more clarification, please visit to a CA. 

 

thanks  

 

Shailendra Singh
Advocate, Delhi
14 Answers

Not rated

no gift deed is required to be  executed 

 

2) funds can be transferred by IMPS or NEFT transfer 

 

3)if money is given as loan then loan agreement should be executed 

 

4) not necessary to give interest on loan 

 

5)parents should not give more than Rs 20,000 by cash to each child 

Ajay Sethi
Advocate, Mumbai
84937 Answers
5617 Consultations

5.0 on 5.0

1. There is no limit to gift parent on there wish from there income can gift as much they want.

2. It is not mandatory but for tax authority purpose notarized gift deed can be made.

3.Regidtered gift for money gift is not required and is not mandatory under registration act.

4. Yes for that loan agreement for friendly loan should be made.

5. No interest can be charged it is illegal.

Shubham Jhajharia
Advocate, Ahmedabad
25518 Answers
149 Consultations

5.0 on 5.0

yes.. 

you need not required any registration of the deed.

 

even at the time of filing the return, your CA shall intimate you to get one formal declaration from the sender of the money to fill the legal requirement.

 

Thanks..

 

Shailendra Singh
Advocate, Delhi
14 Answers

Not rated

Father can transferred amount through bank. the son will not have to pay any tax on the Rs 3 lakh gift amount. However, he will be liable to pay tax on any income derived from it.

 

Mohammed Mujeeb
Advocate, Hyderabad
19012 Answers
31 Consultations

4.5 on 5.0

Anything except immovable property like house, land etc can be gifted by give and take. No writing required. Only will mention in I T return of receiver, received as gift.

No, or can execute borrowing agreement and notory. 

Yogendra Singh Rajawat
Advocate, Jaipur
21452 Answers
31 Consultations

4.4 on 5.0

Dear Sir,

1) how much cash parents can give as gift to there adult children

Ans: You can give an amount up to Rs. 50,000 to a family member without it being taxed as per the Income Tax Act, 1961.

2). is there any gift deed required to be made, 
Ans: Yes it is gift deed required
3) gift deed compulsory registered to registry office or just performa on bond paper with doner signature and witness signature.

Ans: Yes, it is compulsory to register the gift deed in registry office

4) if these money transfer show as a loan any documentation required for that.
Ans: No,
5) Is it compulsory loan interest give to parents.
Ans: No.

Netravathi Kalaskar
Advocate, Bengaluru
4952 Answers
27 Consultations

4.8 on 5.0

1. For transfer of movable assets including money, no need is required to bee executed and hence there is no requirement for registration either.

2. if the money is for accommodation loan then no interest can be imposed. In any event no private person can without a money lending license can ask for interest on loan.

Devajyoti Barman
Advocate, Kolkata
22515 Answers
366 Consultations

5.0 on 5.0

If the said amount is given as gift then you need not execute deed as for movable property and cash the deed is not mandatory.  Gift tax of not applicable to close relatives

Prashant Nayak
Advocate, Mumbai
24936 Answers
58 Consultations

4.4 on 5.0

You can make a promissory note to take the money from your parents as loan that will be enough document to recover the amount in case your parents wants to do so otherwise it is fine you need not to do any registration but the document can be notarized

Vimlesh Prasad Mishra
Advocate, Lucknow
6829 Answers
23 Consultations

4.9 on 5.0

1. No limit. Cash gift by parents to children is exempt from income tax in hands of children

2. No. Just a simple letter is enough stating that money is by way of gift. Letter to be signed by donor

3. Not required. Same as above. Just affix court fee stamp or revenue stamp on the letter

4. No loan documents required. Only amount to be shown as loan in books of accounts of both parties

5. Not compulsory in case of loan by parents to children 

Yusuf Rampurawala
Advocate, Mumbai
6565 Answers
60 Consultations

5.0 on 5.0

Your parents can give any amount as gift to you.

It would be better that they transfer this amount by a gift deed.

The gift deed need not be registered.

They can even give this amount as loan for which they can execute a loan agreement or a promissory note.

If it was a hand loan then there is no need for interest, however if there is a mention about  the loan interest  in the loan agreement or  promissory note then  the loan interest may have to be given.

 

T Kalaiselvan
Advocate, Vellore
75050 Answers
1263 Consultations

5.0 on 5.0

Dear sir 

Your parents are paying tax on that money and after that they are giving you the money you can show it as gift from your father and mother and evade tax by taking money in small amount by bank transfer maximum upto 25000 per transaction. And you will not be needing any documentary proof for that just you have to mention in return that you are recieving money from parents as gift. 

Mohit Kapoor
Advocate, Rohtak
10688 Answers
7 Consultations

5.0 on 5.0

  1. Yes, you have rightly stated in your subsequent query that gift deed for movable property like cash is not mandatory.
  2. It would be sufficient to get it one stamp paper duly signed by both the parties.
  3. And this can be for the purpose of third party making any claim against the money given to you by your parents as once the gift is given then it cannot be revoked.

Sanjay Baniwal
Advocate, South Delhi
5464 Answers
13 Consultations

5.0 on 5.0

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