Gift Deed

GIFT DEED

MODIFY THE FORMAT SUITABLY BY ADDING THE AMOUNT AND CHEQUE/ D D NOS'

actually my father in law wants to gift me an amount of Rs. 30 lakhs,  i wanted to know how it will be treated in taxation, is it a taxable income for me? or there is no tax for gift

Ans. Any gift from relatives of any amount during the financial year is completely exempt from tax. The Explanation to Section 56(2)(vi) provides that the expression “relative” means:

• Spouse of the individual;
• Brother or sister of the individual;
• Brother or sister of the spouse of the individual;
• Brother or sister of either of the parents of the individual;
• Any lineal ascendant or descendant of the individual;
• Any lineal ascendant or descendant of the spouse of the individual; and
• Spouse of the person referred to in clauses (ii) to (vi).
   

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.

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 in a financial year.

Sir, Thanks u very much for u valuable reply, 

My another question is, 

The Deed should be registered or just notary is ok for it?

If registration/Notary  is required then what would be court fee for the same amount, is there any % for the said amount need to pay as court fees.

Since it is a gift of money there is no requirement to register or notarize the deed, optionally you can notarize it

GIFT DEED

I, _____________ S/o Sh.___________ age  r/o ____________________, solemnly offering and declare as below :

1.That on  day  out of natural love and affection towards ---------------------s/o ----------------age---------.resident at ----------------------made a gift of Rest. -----------(Rupees----------------------)by Cheque no. ---------dated--------which was gladly accepted by --------------

2.That the said gift was made by me absolutely irrevocable and forever , out of natural love and affection which I towards the said donee who is my ------------and the said gift was made out of my own free will .

3. That the said sum of Rs. ------------(Rupees --------------------------------)was given out of my self acquired funds and other person had any right , title and interest in the said sum .

4. I am not assessed to Income tax and /my source of Income is Agriculture & Pension

Or

I am assessed to Income Tax at ward ----------------at ------------my Pan is ----------------

5. That Whatever have been stated above are ture and correct to the best of my knowledge and belief .

IN WITNESS WHEREOF, I have executed this deed this ________ day of __________.

Witness: 1

                2

I, SRI. ______________, the donee hereby accept the gift.