One of my best friend has offered me 15crores as a gift! She will be depositing that huge amount as a cheque in my account within a month or so. Both of our bank accounts are in different branches of the same nationalized bank. She is offering this amount to me absolutely as a gift with no liability or whatsoever.
Since she is not a blood relative and only a best friend (yearning for my future welfare and making my dreams come true) and residing in different part of the country, what are the legal consequences (including later enquiry and clarification that may needed in future) for such a deed. She will bedepositing in person her 'gift cheque' while I am with her, what are the precautions or procedure to the same. Whether a 'gift deed' letter should be made at the time of the deposit? If so, what is the format for 'gift deed' document. Should I approach a lawyer along with her before the deed. What documents should I need in hand when inquiry comes from IT or elsewhere.
I will greatly appreciate if some on can give me definite answer.
Thank you.....
1 Answer from Attorneys
Hi,
The amount received by you above Rs 50000/- from a friend is taxable in your hands under " Income From other Sources". Had it been a gift from a relative then it would have been exempt from tax.
The signing of gif deed it necessary between the parties to avoid any suspicion or inquiry by the income tax authorities in future, since it is a huge amount and chances are high for inquiry.
It is also to be keep in mind that your friend must have declared those Rs 15 Cr in her IT returns as income or otherwise.
You may contact a lawyer to get the gift deed drafted and to analyse other prospects of the transaction from the eyes of revenue department.
Regards
Jeevesh Mehta | Corporate & Tax Advisory| at Maven Legal LLP- Advocates & Consultants
Ph: 09811617186
Related Questions & Answers
-
Is it huf asset or individual asset Long time back my father converted one self... Asked 8/09/13, 12:25 am in India Tax and Taxation Law
-
I'm a member of co op hsg society in Mumbai.& want to transfer my rites etc to... Asked 8/04/13, 10:34 am in India Tax and Taxation Law
-
This is regarding non deduction of TDS by the employer. A company fails to deposit... Asked 8/01/13, 12:43 am in India Tax and Taxation Law
-
What is penalty in India if Tax has been deposited but ITR is not filled? Asked 7/31/13, 12:48 am in India Tax and Taxation Law
-
I'm a current resident of Ahmedabad, Gujarat. My father, age 87 years, has two... Asked 7/29/13, 9:14 pm in India Tax and Taxation Law
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
