Gifts under income tax

ajay kumar sarawogi (Querist) 17 August 2013 This query is : Resolved
My son made gifs to her mother out of his own
fund ( not borrowed )amounting to Rs 7,00,000
in the financial year 12 -13. The gift made
was made by five account payee cheques total
amounting to Rs 7,00,000/-Her mother invested
the same in property. My son age is 24 years
and is chartered Accoutnant and his income is from salary and tution fees.

1) Is this gift will be exempted from Tax.
2) How many times son can make gift to her
mother in a financial year.
3) Is it compulsory to make gift deed on
stamp paper and notorised OR writing
the same on plain paper will do.
4) What ITO will see on verifying gifts.
5) Is gift a capital receipt or revenue
receipts.
6) If it is capital receipts under which
column of Income tax Return gifts
received can be shown.

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Devajyoti Barman (Expert) 17 August 2013
TAKE HELP OF A TAX CONSULTANT.

R.K Nanda (Expert) 17 August 2013
consult tax lawyer.

Rajendra K Goyal (Expert) 17 August 2013
The gift was from a CA who is also taking tutions, he must be well aware of the answers of all the queries.

prabhakar singh (Expert) 17 August 2013
1.Yes!under section 56(2)(vii)
2.No limit when hecan account for his sources.
3.Better a notarized gift deed on a token stamp paper of 100/=with cheque details signed by donor and donee both.

4.Donor had sources and has accounted for amount gifted,the relation between donor & donee is true as represented.All precautions so that BLACK EASILY LOOKS WHITE ?HOW MUCH AN YOUNG CA in service and tuition can earn a year?
5.As it is non taxable,it is choice of donee.
6.you would come to know by the date you would file it.

Next time better ask which brand of pen should you use to file return and which machine would be good for typing ???

Guest (Expert) 17 August 2013
By the way, what is the opinion of your CA son?

Raj Kumar Makkad (Expert) 19 August 2013
it is very strange that the father of a CA needs help in the field which is exclusively dealt with his son. Anyway, the gift amount is duly taxable in the hands of your son so he can gift it to his mother as many times as he can.

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