Get affidavit while taking gifts of over Rs50K from relatives

From now on, when you get gift-in-kind valued at more than Rs50,000 from your parents or other relatives, make sure you have a sworn affidavit declaring the donor as your kin.

The Central Board of Direct Taxes (CBDT) has recently ruled that any "gift-in-kind" exceeding Rs50,000 would be taxable at the hands of the donee 'except' from relatives or given during occasions like marriage or by way of inheritance of the donee.

"The donee has to get an affidavit affirming the donor to be his mother, father, brother, sister or any other relative so that at the time of claiming the exemption under the new arrangement, the income tax assessment officer can have on-spot verification without any delay," a senior I-T official said.

An individual can preferably get one affidavit listing all such gifts in the entire assessment year from different or the same relative. The individual will hence reduce the trouble of preparing an affidavit each time he receives a gift, the official said.

During the assessment of the I-T returns, the affidavit will save you from the hassles of proving the gift, both movable and immovable, being received or inherited from any relative residing in any part of the world. It will also establish the donee's relationship with the donor, the officer said.