Answer Book question
Gifts to specified relatives. including children, spouse, parents and siblings. are generally not taxable in the recipient's hands under current Indian rules, in any amount. But income earned on money gifted to a minor child or a spouse can be "clubbed" back into your income for tax. Document large gifts with a simple gift deed. A CA should confirm the current position.
Gifts to specified relatives. including children, spouse, parents and siblings. are generally not taxable in the recipient's hands under current Indian rules, in any amount. But income earned on money gifted to a minor child or a spouse can be "clubbed" back into your income for tax. Document large gifts with a simple gift deed. A CA should confirm the current position.
A father gifts ₹20 lakh to his adult daughter for a house deposit. No tax on the gift. She invests part of it; the income is hers. Had he gifted it to his wife and she invested it, the income would be clubbed with his.
Relative gifts are exempt; clubbing provisions address income-shifting to spouse and minors. Documentation protects against later questions.
Recipient is a specified relative Adult vs. minor Clubbing implications Gift deed for large amounts Source of funds documented
Gifting to a spouse to "save tax" on the income.
NRI gifts to resident relatives follow the same principle with FEMA overlay; a CA should confirm.
₹20 lakh to adult daughter: no tax; income hers.
Gifts to non-relatives above the threshold are taxable for the recipient.
Confirm relative status Execute a gift deed Consult a CA for large amounts
I sold land and received ₹25 lakh. What should I do first? How can I make my own finances easier for my children to find?
Family support · Kerala Rising Money
Kerala Registration Department procedures · Income Tax Act provisions on gifts and clubbing · Hindu Succession Act / Indian Succession Act / personal laws as applicable · RBI guidance on joint accounts and minors' accounts · Kerala Rising is not a law firm; property and succession matters need a lawyer Rates, limits and whether you may qualify change. Confirm with the official source. Ask Kerala Rising: Send us the situation. who, what, how much, and what you are worried about.
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This page is general orientation, not personal insurance, investment, medical, legal, lending, tax, or professional advice. Rules, rates, benefits, and claim or application decisions can change. Confirm the current position with the named official source and use a licensed or qualified professional where your situation requires one. Kerala Rising does not decide whether you may qualify, approve claims, or promise an outcome.