As per the Income Tax Act, 1961 if the value of gifts received is more than Rs. 50,000 a year, then such amount is taxed as income in the hands of the receiver. These gifts may be in any form – cash, jewellery, movable and immovable property, shares etc.

The income tax rules specify relatives from whom tax free gifts can be received. These are:

Parents

Spouse

Your and your spouse’s brothers and sisters

Brothers and sisters of your parents

Your lineal descendants (including spouses)

Lineal descendants (including spouses) of your spouse

1) your mother can after payment of lease no term capital gains tax distribute sale proceeds among family members

2) no gift deed is necessary

3) if gift deed is executed registration of gift deed is mandatory

4) signatures of family members is not necessary

Don't go online for such legal transactions.

Instead, consult a lawyer in person, even if you pay a fee so that you will not have legal issues in future.

hi, there is no standard format of the gift deed ..A valid gift deed is registered before the revenue officer , in the similar way as the sale deed is registered

1. Get the gift deed drafted by a lawyer. You may engage one from this portal by opting for 'review property documents'.

2. The gift deed requires mandatory registration.

3. The gift deed has to be executed by the donor in favour of the donee, so donor and donee have to sign apart from two witnesses.

There is no specific format of a gift deed which can be used universally.

A lawyer will draft the same for on the instructions given by you.

You may go through one sample of the gift deed at the following link:

http://202.138.101.165/karigr/modeldeeds/giftdeed.pdf

Regards

Contact a local lawyer who can draft a gift deed for you

Yes gift deed has to be to registered. You all can sign if you want to give NOC for the said property. Otherwise the donee and donor signature is enough.

By virtue of Section 56(2), any sum of money exceeding Rs. 50000 received without consideration by an individual or an HUF from any person is chargeable to tax as income under “other sources” subject to some exclusions .

any amount received from specified relatives is totally tax free in the hands of recipient. So if a relative gives you gift in form of cash/cheque or in consideration, you will not have to pay any tax on the amount received.

Following is the list of relations which are considered as “relatives” for this

Your spouse

Your brother or sister

Brother or sister of your spouse

Brother or sister of either of your parents

Any of your lineal ascendants or descendants

Any lineal ascendant or descendant of your spouse

Spouse of the persons referred in above points.

So if you want to buy a house and your father/mother/sister/brother etc transfer Rs 20 lacs to your bank account. You don’t need to worry about the taxation part, because its a gift from your relatives and you will not have to pay any tax on this amount. However its a good practice to do the documentation for this, if the amount if pretty big like in this example. All you need to do is document this transaction on a paper which clearly states that who transferred the money and the reason for it, along with the signatures of both parties. In future, if there is any income tax scrutiny, this small piece of proof will be handy and will help you a lot.

Kindly suggest a format for the required gift deed

There is no specific format for this.

It can contain the details of the donor and donee and the amount involved with date and place where the transaction took place and the reason for this gift.

You can engage the services of any advocate on his/her terms if you still insist on the format.

Hi,

With so many replies you have, you are suggested to consult local registrar office and get the necessary registration done.