My father in law wants to gift amount to my wife, i have following queries : 1. Is there a limit on amount and no of transaction in a year? 2. Does this need to be via cheque always? 3. Does this require any agreement sort of document ? 4. What is the possibility of gifting property from daughter to father? Are there any property gain tax applicable? How the registration transfer will happen
1 Answers
- There is no limit on amount and number of transactions for gifts. Whole amount gifted from father to daughter will be tax free.
- It will be better if its done in white (through cheque or account transfer) so that there is a proof of gift.
- A plain paper document can be made signed by both father and daughter which states that this amount is being given as gift to daughter. Daughter can sign on it as acceptance.
- Daughter can also gift money or property to her father without any income tax liability for both. There will be no property gains on such transfer as consideration amount is nil. A registered gift deed should be done to complete this transfer. Stamp duty on such deed is less than normal property deeds.
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