Mrs . Shanta Rani (Housewife) 09 July 2021
Gift or Loan to a married daughter.
Can Parents give their married daughter money as Gift Or Loan?
If yes,
1. Is there any limit?
2. What is the tax liability arising for either party?
3. What are the documents required to be prepared as per Income Tax law?
Please forward sample documents wherever possible.
A point wise reply would be highly appreciated🙏
Mahesh Vaylam Purathu (Advocate) 13 July 2021
Yes, Parents can gift money/ valuables to daughters
01. Gifts received from Parents (classified as relatives under IT Act) are exempt from tax. by virtue of Section 56 of the Income Tax Act.
02. No tax liability for both the parties
03. There are no specific documents prescribed for Gifts, It is better to get an acknowledgment from the daughter. Cash payments to be avoided.
Doveson (advocate) 15 July 2021
only in case of immovable properties, a gift deed is required to me made. for all other cases, handing over possession of the thing gifted will suffice and showing the same as gifted in your IT returns.
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