From Relatives
Relative means:
- Spouse
- Brother or sister
- Brother or sister of the spouse
- Brother or sister of either of the parents of the individual
- Any lineal ascendant or descendent(A lineal descendant is a person who is in direct line to an ancestor, such as child, grandchild, great-grandchild and on. Similarly, a lineal ascendant is parent, grandparent, great-grandparent and so on.)
- Any lineal ascendant or descendent of the spouse
- Spouse of the person referred to in (2) to (6)
Some tests when receiving gift from relatives
Thus, a gift received by an individual from his spouse, or from his brother or sister, or from the spouse’s brother or sister, parents, or from any lineal ascendant or descendant of oneself or one’s spouse would normally be fully tax-exempt. Similarly, any gifts of any amount whatsoever received from the spouses of any of these persons would also be completely exempt from income tax.
For example, if Mr. X receives a gift of Rs. 3,00,000 in cash from his brother-in-law, that is, his spouse’s brother, it would be exempt since the brother or sister of the spouse comes within clause (3) of the aforesaid explanation.
Hence, whenever you receive any gifts from relatives you must carefully apply the test to ascertain whether the person concerned falls within one of the seven categories as above referred.
From Non-Relatives
If a person who makes a gift does not fall within any of the above categories, then he would be considered as a non-relative and gifts from such people would be exempt only up to the extent of Rs. 50,000 aggregate in a financial year.
Note:
It may be noted that since a Hindu Undivided Family can’t have relatives, any gifts received by it in excess of Rs. 50,000 in a year would be liable to full income tax.
2) Tax-Exempt Gifts from Other Persons
Besides gifts received from a relative or on the occasion of an individual’s marriage, the following are the other gifts which are completely exempt from tax as provided in the proviso to Section 56(2)(vi) of the I.T. Act:
1. Gift received under a Will or by way of inheritance;
2. Gift in contemplation of death of the donor;
3. Gift from any local authority;
4. Gift from any fund or foundation or university or other educational institution or hospital or any trust or any institution referred to in Section 10(23C); and
5. Gift from any trust or institution, which is registered as a public charitable trust or institution under Section 12AA.
Thus, scholarships, stipends or charities received from a charitable institution would be completely exempt from income tax in the hands of the recipients without any limit provided the trust or institution giving the charity is registered under Section 12AA. Likewise, all gifts under a Will, and all amounts received on the death of a person as a part of the inheritance are fully exempt from income tax.
Some Important Point While Receiving Gifts
1. Always take gift by cheque or draft .
2.Get a gift deed mentioning the relationship.Its always better to mention PAN number of the Donor in the gift deed.
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{ 30 comments… read them below or add one }
Dear Sir,
Please let me know if my son can transfer shares to my daughter as gift.My son is elder to my daughter.Is there any limit to the value of shares for tax purpose.Is there any gift tax applicable? What documents should be made to do this.
I am currently residing in US and if a friend of mine wants to give gift, what are the tax liabilities on my friends end.
Thanks for your response.
Sir,
I have known that income from gift given to spouse is taxable to donor only. i.e. clubbing of income rules apply. But I want separate income to be generated by my spouse from my source of income. Is it possible that first i give gift to spouse sister & than she will give same as a gift to spouse. Than no body will be liable for tax & income generated from that to be taxed by my spouse.
Please clear this issue
Thanks
Dhaval shah
HI,
Can I receive immovable property as Gift from father-in-law ? What are the tax implications for the donor and the donnee ?
Thank you
sir
I am interested in gifting cheque of 150000 to one of my blood relation will i be liable to pay any kind of tax on that amount
HI,
Can I gift immovable property to my brother and mother ? What are the tax implications for the donor and the donnee ?
I have received an amount of Rs. 49000.00 in cash from my own brother during the month of January 2009. My IT returns are under scrutiny of income tax and they have asked me to furnish the copy of Gift Deed for receipt of the above amount.
kindly let me know if it is possible to furnish the notarized copy of deed in current date or needs to be made in the back date.
Kindly advise on priority basis as I have to submit the same by 17th December 2009.
Hi,
My Father is willing to gift me the shares the he has accumulated over 15 years of time. Over the time the face value has appreciated and it now reached Rs.1,50,000 approx.
Are these shares exempted from Income Tax?
Please help me with a correct answer.
Dear Sir / Madam
My father-in-law want to gift me Rs.300000. Is it taxable?
Also like to know whether my wife who is a homemaker, receives the
above mentioned amount as gift. Is it taxable?
Please enlighten.
Thanking you.
Dear sir,
suppose any person is going to receive money by property selling like land, now if he wants to distribute this money among his sons & daughters by gift cheque what are the ways & what are the deduction for the same.
what shall be the official procedure for generation of gift cheques.
also what are the tax liabilities of cheque givers.
Pl. provide your kind advise.
Hi,
My father has transferred the ownership of the family house to me through a gift deed. The gift registration amount is less than 50k. Do I need to show the property value as my income or pay any tax (gift tax)?
Reding your article above it gives me a understanding that I don’t need to pay any gift tax. Let me know if my understanding is correct.
Rgds,
Sandeep
Sir,
Can I gift immovable property to my elder Sister who is already married and living with her Husband? What are the tax implications for the donor and the donnee ? kindly clarify?
my brother in law (my sisters husband ) wants to gift an immovable property to me ..does either of us ,mysellf or my Brother in law ,liable to any sort of a tax. or is there a provision for getting the property transfered to my name for a nominal consideration.please clarify
My father want to give myshare of fathers property in cash.Pls advise if I receive the share of property in cash , is it taxable.
Samuel
Can an NRI fron USA transfer money to his father and or his mother as gift with no gift tax to donor and or receiver without any ceiling ?
Dear sir,
I want to know weather Brother son can gift a property to his Chach’s wife i.e. Chachi.
My brother want to give me Rs.500000/- as Gift.Kindly advise as per gift Tax Act.
I have the following questions
What will be the tax implication for the seller of the property when he receives the sale amount through cheque?
dear sir,
I CAN RECIVING THE NRI GIFT? Or HOW MANY % TAX ON AMOUNT?
Dear Sir/ Madam,
My father want to gift me Rs 10,00,000, kindly advise as per the Gift tax act.
Regards
Anurag
I wish to gift Rs.2.00 lakhs to my own brother, in 2009-10, in connection with his daughter’s marriage. Is there any gift tax / income tax involved for me or for him ? Both of us stay in India. Any specific procedure to be followed ?
Dear Sir/Madam,
My Father-in-Law is willing to give gift by way of DD for me. Please advise me, the tax implicatioons.
Regards,
Jagadeesh
Can a Indian Resident Father gift to his NRI son????
No doubt information provided by you are practically benificial to us in different manners. It increases our knowledge for which I really convey my thanks. I would request you to provide a proforma for gift deed, if possible, and also advise as to whether the deed should be written on a simple paper or on a stamped paper (also advise the amount of stamp paper).
I Transfer my Car to my spouse without consideration and my company paying lease rental of car on my behalf to my spouse, Please advice about the Tax Liability
Dear Sir ,,
I am going to get a laptop gift worth 999$ (Rs.45,000 approx,) from an Organization in USA,
They are sending me the laptop by mentioning it as a gift.
The organization is sending me the laptop with no shipping charges ie. they are paying the charge for shipping also. It comes to my home directly in courier.
I am a student .. So Do I need to pay any money as a Gift tax to government for receiving the gift..
Pls reply me as soon as possible because i have only a week left ..
They are going to send me in a week.
pls do reply to my email address sir…
Thanks in advance..
Regards.
Saim
Dear Sir/Madam,
I wish to gift Rs. 2,00,000/- to my daughter in her marrige aniversary. is there any gift tax/ income tax involved for me as for her. kindly advise as per gift tax act
regd
P I Patel
Dear Sir/Madam,
I wish to gift Rs. 2,00,000/- to my daughter in her marrige aniversary. is there any gift tax/ income tax involved for me as for her. kindly advise as per gift tax act
regd
P I Patel
Dear Team,
Situation 1:–What would be tax treatment if I want to Gift INR 25lakhs to my friend without any occasion.
Situation 2:–What would be tax treatment if I want to Gift INR 25lakhs to my friend on his birthday. Will I be liable to gift tax.. if yes, then plz mention the slab rate at which it will get taxed? If possible plz quantify the amount of Gift tax?
Situation 3:– What would be best possible option of gifting amount to unknown (other than relatives) where by IT Department won’t have any objection.
Can i make gift deed in favour of unknown (other than relatives), & if I am ready to pay gift tax, then is there any ceiling over such quantum of Amount?
Would be greatful to you, if you suggest the best way of amount (cash/chq/dd) gifting the amount without any hardle to the receiver & giver.
Dear Sir/ Madam,
My father want to gift me Rs 500000 kindly advise as per the Gift tax act.
Regards,
Prashant