Money as gift

[User_bf0ac8c1]

U

User_bf0ac8c1
PARTICIPANT
February 11, 2025 at 4:04 am

Hi Since gifts are tax free consider the following scenario

My sibling has no income ( student above 18 years)

I want to gift 30 lakh rupees to him ( all white money saved by me and income tax paid)

And then I want to buy a plot in his name.

Will there be any eyebrows of IT dept raised in this case? What itr to file for my sibling and how to show this income? What proof should I maintain to show that I have gifted this amount to him ? Can I just do small upi transfers ( 2 lakh everyday) and just maintain the transaction screenshot? Will there be a problem if I buy plot in his name since he has no income ?

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[User_f5bf43d0]

U

User_f5bf43d0
PARTICIPANT
February 11, 2025 at 4:19 am

Consult a CA since this is a big transaction. Anything above 1 lakh in transfer is not easy to just file an ITR for. It’s better to get your CA to handle this and file it properly and yes you will need a gift deed.

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[Fiercefox9369]

F

Fiercefox9369
PARTICIPANT
February 11, 2025 at 4:26 am

If it’s all white then why transfer to bro and risk it all.

Male the registration in your name only.

Not all gifts are free of tax.

Gifts are charged highest tax plus cess and what not , where you already paid your tax on it.

As someone said it’s all complicated and just consult a good CA and find alternatives as the money is high.

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[Niharikarider869]

N

Niharikarider869
PARTICIPANT
February 11, 2025 at 4:31 am

Gift to sibling is tax free. It is better you transfer it in 3-4 transactions of less than 10L each, rather than too many small UPI txns.
When transferring through NEFT or RTGS mention reason as gift to sibling. Create a simple gift deed ( format available in internet) and give it to your sibling for their records. 

I assume your sibling has a bank account. Ensure they file ITR showing bank interest and any other sources of income. Some CAs recommend showing the gift amount as exempt income in ITR. Other CAs say it is not needed. This is a gray area.

While buying the plot, transfer the money from his account.

There is 99% chance there will not be any notice by IT as it is white money transferred through banking channels and property bought with it.

In case there is a notice, preserve all the evidences like source of money that you transferred and transaction details.

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[User_bf0ac8c1]

U

User_bf0ac8c1
OP
February 11, 2025 at 4:38 am

Thanks
And what if this money is let say 3 lacs?

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[User_270af189]

U

User_270af189
PARTICIPANT
February 11, 2025 at 4:46 am

its def blackmoney … its giving the vibe of “cylinder stuck in a M&M jar post” haha

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[User_07877e8e]

U

User_07877e8e
PARTICIPANT
February 11, 2025 at 8:02 am

Easier to buy a plot on your name and do a gift deed since he’s your sibling. No tax problems.

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[User_bf0ac8c1]

U

User_bf0ac8c1
OP
February 11, 2025 at 8:03 am

Yes but basically I want to place multiple bids

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[Primetejas7441]

P

Primetejas7441
PARTICIPANT
February 11, 2025 at 1:32 pm

It’s possible and no tax issues should be there , but why not buy it yourself ? I hope the same story doesn’t end up in family fraud page someday !!

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