Gift Tax Exemption
Hirachand Chheda
(Querist) 03 January 2010
This query is : Resolved
Dear Experts,
One of my client is a grandfather and he has given gift Rs. 10lacs cheque to his grandson who is 2year old can u tell me what will be the tax effect on this and what documents should be neccessary for preparation of this.
A V Vishal
(Expert) 03 January 2010
There is no liability on account of the gift by the grandfather to his grandson. However, a gift deed stating the gift, if executed can be useful in the future.
GIFT OF MONEY TO GRAND SON
LET IT BE KNOWN TO ALL by this Deed of Gift that I, ..............S/.................R/o..............do, hereby, out of natural love and affection and also out of my free will and without any force, compulsion or undue influence, transfer an amount of Rs...................... to my grandson ...............S/o............. R/o..........
IN WITNESS WHEREOF, I have signed this deed of gift on .................................
In presence of
Witnesses: Sd/-Donor
1
2
________________________________________________________________
Raj Kumar Makkad
(Expert) 04 January 2010
There is no tax liability in the given matter.
Vineet
(Expert) 04 January 2010
There is no tax liability on this transaction.
Any income accruing to the child from this money or any other assets (other than the income earned by artistic or any other effort of child) shall be clubbed with the income of one of the parents.
soumitra basu
(Expert) 05 January 2010
You can make an affidavit by the Grand Father stating that he is making this Gift to his grandson.Please note that the interest income, if accrued and due in a particular year, shall be added with the guardian.
