Gift taxation

YOU QUERIES:  1. Is money transferred to my account by my grand father taxable in my hands?

                        2. If taxable how much to pay and how?

                           3. Since it is a gift is there need to show documentation or make a gift deed?

i am 18+

REPLY: 1. No, if the GF is your lineal ascendant;

            2. Depending on the 'slab' (10%/20%/ 30%) in which you are taxable.

            3. No gift deed as such is necessary for a movable property; however, better have a 'Confirmation Letter' from the donor.

Sir,

Thank You R RAJAGOPALAN sir

My Grand Father is my lineal ascendant.

1.Will there be any deductions by the bank authorities?
2.In general, for students what is the limit for taxation?

Thank You

I  am  in  full agreement with Mr.Raj Gopalan's  opinion on your query.

Dear, 

Regarding your query,

YOU QUERIES:  1. Is money transferred to my account by my grand father taxable in my hands?

Ans : No any amount received as Gift from a relative is not subject to tax.

2. If taxable how much to pay and how?

Ans : Not taxable, hence fictional.

3. Since it is a gift is there need to show documentation or make a gift deed?
 

Ans : Yes, you may be asked to prove the source of fund appearing in your bank account and for that purpose you may need a documented evidence.  It is there-fore advisable and better to have a Gift deed executed in the presence of witnesses.

i am 18+

REPLY: 1. No, if the GF is your lineal ascendant;

            2. Depending on the 'slab' (10%/20%/ 30%) in which you are taxable.

            3. No gift deed as such is necessary for a movable property; however, better have a 'Confirmation Letter' from the donor.

Amount Received From Your Grand Father , Will be Treated as Gift.

And Gift received from Relative is Exempt Under Section 56(2)(Vii) of Income Tax Act,1961.

Refer section56(2)(vii) on this Link:https://www.exploreincometax.com/Indian-Income-tax-Act-1961/Section-56

My wife had ppf account. She passed away and my son got money as he was nominee. He wants to give all money to me. Will this money become taxable to me?

If no, what way I should document it a Gift deed or just letter from my son.

Thanks in advance for good advise

Since your son is a relative within the meaning of the Income Tax Act 1961- in order to have full exemption from gift tax -enter into a legally valid registered gift deed with a valid donation from the donor son and a valid acceptance  by you and the said gift deed should be attested by at least 2 witnesses.However, any income generated out of this gifted money, whether  in cash or kind is taxable in your hands. If you wish to thank me for this reply-please click the thank you button on this forum.

You can reinvest the entire sale consideration as you held this residential property asset for 3 years or more as per your query and can claim full income tax exemption  under Income Tax Act 1961 if it is your only residential house. Or, if this is another residential house in addition to whatever you already have to avail of tax exemptions, spread over this new residential house- you are going to buy in the name of your spouse of your son, daughter or your brother and his spouse or their children etc and other relatives within the meaning of IT Act 1961  by way of registered gift deed/s etc.If you wish to thank me for this reply please click  the thank you button on my profile.

                                             You can reinvest the entire sale consideration even if it is higher than capital gain as you held this residential property asset for 3 years or more as per your query and can claim full income tax exemption  under Income Tax Act 1961 if it is your only residential house. Or, if this is another residential house in addition to whatever you already have to avail of tax exemptions, spread over this new residential house- you are going to buy 0in the name of your spouse or your son, daughter or your brother and his spouse or their children etc and other relatives within the meaning of IT Act 1961  by way of registered gift deed/s etc.If you wish to thank me for this reply please click  the thank you button on my profile.