Gift deed needed or not
i want to gift a sum of 48000 rs to a friend of mine(i.e. we are not related) through Bank transfer. Do we need to make a gift deed or not ? and if we need please tell the overview of it, and any stamp paper is required for it or not ?
Hi,
any sum of money or property received by an individual or HUF from any person (except from relatives or member of HUF ) shall be taxable under the head ‘Income from other sources’:
a) If any sum is received without consideration in excess of Rs. 50,000 during the previous year, the whole amount shall be chargeable to tax;
as in your case the amount is less than Rs 50000, then it is not taxable, if he is not receiving any other gifts in the same financial. i.e the amount of gift together should not exceed Rs 50000.
it is better to have a gift deed, as a proof of gift.
Simple format of deed:
GIFT DEED
KNOW ALL MEN BY THESE PRESENTS that I, _____________ S/o Sh.___________ r/o ____________________, transfers voluntarily, CASH OF value of which is Rs._____________ (Rupees_____________ only) to my SON/HUSBAND/SON IN LAW / Friend SRI.____________ S/o of Sh._________________ (hereinafter referred to as "the donee") To Hold the same to the donee absolutely forever. I further declare that the said gift has been made by me out of my natural love and affection for the donee and the same has been accepted by the donee.
IN WITNESS WHEREOF, I have executed this deed this ________ day of __________.
Witness:
1.
DONOR
2.
DONEE
I, SRI. ______________, the donee hereby accept the gift.
MODIFY THE FORMAT SUITABLY BY ADDING THE AMOUNT AND CHEQUE/ D D NOS'
You can give gift to friend by writing on a stamp paper of say rs.100.
Hello Sir,
No Gift deed is not necessary but it is advisable as it is a proof that an amount has been gifted.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP.
