Taxability of Gift of money
Amount exceeding Rs. 50,000/- aggregate value of cash gifts received without consideration during a financial year (FY) would be taxable as other income in the hands of the recipient. However, if the aggregate value of such gifts is less than Rs 50,000/-, then it would be exempt from tax. In addition, gifts from specific relatives like parents, spouse and siblings are also exempt from tax.
Sample format of Gift Deed for amount paid through Cash or Cheque is given below:
This Deed of Gift made at _________ on this day of ___ 20____.
Mr ________________ S/o Late Sh. _____________ aged __ years resident of ____________, ___________, ___________, _______ (hereinafter called the "Donor") of the ONE PART
Shri _____________ Son of Late Sh. _____________ aged about ___, resident of
_________________________________(hereinafter called the "Donee") of the OTHER
WHEREAS the Donee is the son of Donor.
WHEREAS the Donor is the lawful and absolute owner of Rs. ________________ standing creit in his Saving Bank Account No________________.
AND WHEREAS the Donor out of his natural love and affection for the done, his son, is desirous of making a gift of Rs. ___________ (Rupees ___________________) from the above mentioned Bank Account to the Donee.
AND WHEREAS the Donor has issued a Cheque for Rs. __________ (Rupees
________) bearing No. ______________ dated ___________ drawn on __________ bank
to the Donee and Donee accepted the Gift.
THIS DEED OF GIFT WITNESSETH AS FOLLOWS
1. In consideration of natural love and affection which the Donor bears for the
Donee, the Donor out of his own free-will and pleasure and in full possession of
his senses, hereby gives, conveys, grants, transfers and confirms into the Donee
all his rights in the aforementioned shares free of all encumbrances.
2. The Donor has hereafter no right what-so-ever in the aforementioned shares or in the income whereof or accretion thereto.
3. The DONOR has give amount of Rs. __________ (Rupees ________) bearing No. ______________ dated ___________ drawn on __________ bank to DONEE this day
4. The DONEE has accepted this Gift
5. The DONOR further declares that the this gift is irrevocable and I have no claim left whatsoever on the said gifted amount and he is free to utilise it in any manner.
IN WITNESS WHERE OF, the donor has executed the deed of gift and delivered the same to the donee who has also executed the same in token of acceptance.
- Date and Place where the deed is to be executed
- Information about Donor and Donee like Name, Residential Address, Relationship among them, Date of Birth, etc.
- Details about the money gifted
- Two Witnesses and their signatures
- Signatures of Donor and Donee along with the witnesses
Legal Notice Formats