Hi, My Name is Deepthi. I am temporarily out of India. My father got retired this month. He would like to deposit 10 lakhs into my account. Question 1: Can he give me this money as a gift, if yes, what is the procedure to follow ? Question 2: As i dont have any income in India, how much tax should i pay if he deposits it directly ? My Email ID: [deleted] ph: +[deleted] Thanks Deepthi
- As you have mentioned you are temporarily out of India, assuming you are current residential status is resident in India and the funds will be transferred to your regular saving bank account in India. In such case, it would be treated as gift and gift between relatives is exempt from tax. Draft a proper gift deed and you should file the ITR next year showing such amount.
- For detailed discussion, you may consider phone consultation through this website.
Hi
The money is received from a relative, which includes, among others, any lineal ascendant or descendant of the individual is fully tax exempt on your hand. So, it is very clear that money received from your mother or father would be not taxable on your hand.
It is advisable to receive the amount through bank channel & gift deed.
We may assist you in drafting gift deed.
It is advisable to take a phone consultation for detailed discussion.
Hi
Gift received from relative is exempt.Here relative include parents there this no taxable.
You just need to draft a gift deed. & File ITR & show gift income.
For more details please have a phone consultation
Hi Deepthi,
He can gift you the same. It is advisable to make gift deed for the same.
Since it is from your father, it is exempt from tax.
Hello,
1. Yes, your father can gift you the money. A gift deed would be required to be drafted.
2. A gift from a relative as per income tax law is exempt from income tax.
I hope this answer satisfies your requirements.
Regards,
CA Hunny Badlani
YOu are not taxable on the gift received from father. He should pay the necessary tax on that money if it his income and thereafter transfer as a gift. He should make an gift deed. In case you earn anything from this money, the income is to be added in your father income for tax.
Just prepare a gift deed on ₹500 stamp showing the cheque number or NEFT details vide which gift is being received.
No tax needs to be paid on gift.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you
Hi Deepthi
Your father can transfer funds directly to you. There would be no taxes applicable. Gift from relatives is exempt from Income Tax.
Yes, he can give you as gift. You can make a simple gift deed which will state that gift is received from father out of love and affection.
If it is deposited in your account in India, whatever income( interest) you generate from this money will be taxable in your hands.
Hi Deepthi,
Answer 1: Yes your father can give you gift by depositing Rs. 10 lacs in your Indian Bank Account. In case of gift there is a simple requirement of gift deed to be executed on non judicial stamp paper and it should be notarized in India.
You do not have to submit this gift deed any where it is just for keeping a record that you have received Rs 10 lacs from your father as gift. It will be submitted only when income tax department ask for it.
Answer 2: No tax will be paid as gift is exempt as per the income tax act.
Thanks and Regards
Divya Chugh
