Gift money to son for purchase of land

UDDHAO GAWANDE (Querist) 21 January 2017 This query is : Resolved
Mr A has purchased a plot for which his father issued cheque amounting to Rs. 30 lakh to the owner of plot.
1.Was it necessary to prepare a document like gift affadavit by father?
2. Is there any Income tax implications to Mr A?
Thanks and regards

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rajeev sharma (Expert) 22 January 2017
Yes. Otherwise it will be a benami transaction on part of father

Rajendra K Goyal (Expert) 22 January 2017
The cheque was from father, plot was in the name of son.

Discuss with local lawyer and regularize the transaction by preparing proper documents to avoid legal complications.

Guest (Expert) 22 January 2017
There is Nothing Illegal in it But you have to Disclose every thing in your IT Returns and No need of any documents between you and your father which would Complicate.Only Relevant Income taxes to be Paid by both of you and Transactions to be Stated in IT Returns. Discuss with your Auditors.

Rajendra K Goyal (Expert) 22 January 2017
Gift received is not income / not taxable if received from father, any income on this gift is taxable in your hands.

IT forms does not have the column for gift received / given, if filing return manually you can write as footnote, if filing online such facility is not available.

If any query received by tax authorities on the basis of transaction, your documents may serve the purpose / help you.

Guest (Expert) 22 January 2017
The Child/Anonymous who has No Profile for It Self and Had even Criticized and Insulted Senior Expert/Senior Advocate Mr.Rajkumar Makkad Ji is Now trying the Same Modus operandi with Others also.

Guest (Expert) 22 January 2017
The child/Anonymous is Posting as if he is a Master in Income Tax to deceive the Innocent Querist.

Guest (Expert) 22 January 2017
There is also separate Dept for Gift Tax headed by Gift Tax Officer in IT Depts.

Guest (Expert) 22 January 2017
Dear Author Please Discuss with your Auditors in Detail So that the Transactions would be exhibited in the IT Returns of both your Father and Your self Complying the Formalities and Procedures and you would be 100% safe.

Guest (Expert) 22 January 2017
No such Documents mentioned by the Child/Anonymous/Hippocrates will have any Legal Value and any one could execute among them selves obviously for Corruption and IT Dept will not treat it as a Record.

Ms.Usha Kapoor (Expert) 23 January 2017
Agree with experts.

Guest (Expert) 23 January 2017
Thanks Please

ramaraju ramaiah (Expert) 25 January 2017
Narasimha sir is correct please consult local lawyer

Rajendra K Goyal (Expert) 26 January 2017
Gift from father to son is not taxable, you can receive confirmation from father that he has gifted you this much amount.

Assets and liability statement need to be filed if income is more than 1 crore in one FY.. Even in such case as this is not your income / liability nothing need to be mentioned in return if above the threshold limit to file return online.

Guest (Expert) 26 January 2017
Only your Auditors could lead you Right Legal Path and Not the Child/Anonymous Here.

Dr J C Vashista (Expert) 28 January 2017
Consult a local CA or tax consultant.

ramaraju ramaiah (Expert) 28 January 2017
Father has to prove source of income if fell into scrutuny in your case failing which donee (gift receiver ) is liable tax with penalty. no seprate document necessary between father and son.payment made by cheque is enough

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