Dear all, My friend whose mother was retired from Govt. service. She got money of Rs.13 lacs from her services. She wants to give 10 lacs to his son who wants to buy flat from that amount. Queries 1. Can his mother make gift deed o when she gives money to her son? 2. Is there any amount limit for gift deed as per income tax rule? 3. whatever amount will received by mother. Is it taxable to her son? Many thanks in advance
As per sec 56(2) of income tax act Any sum of money or kind received as gift from relatives will not be taxable at all means there is no limit specified for amount (gift) received by relative hence any amount received by relatives is not taxable....but it is advisable to you to make a gift deed for future reference.