Tax on cash gifted to Daughter through cheque

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Tax on cash gifted to Daughter through cheque

My daughter and son-in-law wants to purchase flat by taking home loan jointly from bank for saving income tax as both are working. I got retired from government service in November 2017 and received retirement benefits. I want to give gift to my daughter for purchasing flat with partial amount (say Rs 20 lakhs) through cheque in her name. Any income tax implication to Father and daughter?

Profile photo of MADHAV UPADHYAYA Asked By: MADHAV UPADHYAYA 3 replies 1 helpful answers Last Updated: 3 months, 2 weeks ago
  • Profile photo of MADHAV UPADHYAYAMADHAV UPADHYAYA
    Participant

    My daughter and son-in-law wants to purchase flat by taking home loan jointly from bank for saving income tax as both are working. I got retired from government service in November 2017 and received retirement benefits. I want to give gift to my daughter for purchasing flat with partial amount (say Rs 20 lakhs) through cheque in her name. Any income tax implication to Father and daughter?

  • Profile photo of Shreya OturkarShreya Oturkar
    Moderator

    Gift received by a daughter from her father is tax exempt in her hands. Also, the clubbing provisions will not attract to the father. But, to avoid future complications, one should make a formal document with respect to this.

    • Profile photo of MADHAV UPADHYAYAMADHAV UPADHYAYA
      Participant

      What type of formal document. Just witten ducument on paper please clarify Thanks and Regards

      • Profile photo of Shreya OturkarShreya Oturkar
        Moderator

        A self declaration by you on a stamp paper or a notarized self declaration on a plain paper will be sufficient as a proof. The documents should clearly mention the amount of gift, date of payment and more of payment of the gift.

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