I have received gifts from my father & wife in form of cash which was transferred through Account transfer in multiple account online transfer transactions over a period of time in a year to my bank account and through cheque deposit as well. I know that as per tax law in india, if you are receiving gifts from wife or father, you need not to pay gift tax. But does it require to declare that amount as gift received as part of tax return of the year for the person who received gift and any documentation to be processed/prepared to make this gift recorded in the system to avoid any trouble later or it is not required as it is from wife/father?
Dear Sir,
Yes, you are correct. You don't need to pay any income tax on gift recived from wife and father.
But you have to show this amount in your tax return and it is advisable to prepare a gift deed to document this.
Please feel free to call/ revert in case of any doubts
Thanks and Regards
Sir it is always suggested to take written gift acknowledgements from the persons you receive gift. This will be easy for any unforseen trouble in future from departments.
If i need to show it in Tax return, the amount received from my wife & my father, need to be shown seperately and under which head it need to be shown in the IT return? When you mentioned written gift acknowledgement, does it work if i take it in normal paper declaration and notarize it or formal gift deed paying duties etc is must for it?
Exempt Income.
It can be on a normal paper or Stamp Paper.
It is not required to be registered. Only need to keep in your file for future reference
You have to show it under exempt income and you can prepare gift deed on normal paper and notarize it.
Please feel free to call/ revert in case of any doubts
Thanks and Regards
Abhishek Dugar
CA CS B.Com
Dear sir,
Yes you need to show this receipt as gift from relative u/s 56 and also to sign and execute notorised gift deed on atleast Rs. 100 stamp paper to support your claim of gift to relative. it will be under the head income from other source as exempt income.
Hi,
The Gift amount has to be shown Schedule EI - Exempt Income.
Normal agreement will be fine. But it is advisable to get a Gift Deed done, especially if the amount involved is huge.
Hello Sir,
It is to be shown in your IT return under the head Exempt Income and it is preferable to make a formal gift deed with notarization. No duties are to be paid thereon.
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
