Is gift deed option for Proof of fund is safe ?

[viki.swami]

Hello,

I have a doubt in furnishing my POF

Actually I have two bank accounts in India. (1)One is basically for my day to day usage purpose and (2) one is for saving fund

But since there was a requirement of more fund for clc my father had lent me money and sent to my (1) account. But since all my saved funds were in (2) I had to do transfer funds from (1) to (2).

My question is if I prepare a gift deed for the sudden inflow from my father which details should I furnish because I don't intend to show (1) account to clc.

Transaction ref number varies in my father's account and in my (2) account.

Else how to prepare my gift deed with the above mentioned anamoly.

Can someone pls help with this ?

 

[garfieldm89]

I am an Indian citizen and I have around 2 lakhs INR in my savings. I am planning to take the remaining 5 lakhs as proof of funds from my father who is actually getting it from my brother in Canada.
Since it will be easier to show gift deed from my father, that's why i am taking it from him and not directly from my brother.

My question is:
1. Can i directly get the whole amount transferred and show it together or should I break it in small parts?
2. Will cic be asking details on how my father got it?

I have my IELTS and WES evaluation done and waiting to submit express entry profile.

 

[neoprime1989]

You can go both ways, but the second one is definitely complicated and might raise doubts also. In my opinion Easier way is to get a Gift deed from your Parents. There is no gift deed form as such, just ask a notary in your country, he will provide with you a Gift deed as per your country's format on a notarised paper. It should be ideally signed by your parents (donor) and you (donee) and few witnesses. There are number of formats available on this forum also if you want to check out.
But the main content of the deed should be that your parents gifted you the money out of their free will, love and affection and without any coercion or undue influence etc., on so and so date via so and so check number from their account number-abc, in Bank-xyz. That you are free to use the money as per your wish and needs. Also that you accept this gift etc. Something along these lines will be fine.

Dear Gurik

Is "a transaction via CHEQUE" mandatory ? I mean what if it's just a transfer ?


Thanks

 

[megha009]

Its perfectly fine to receive a gift after ITA, it is not misrepresentation and many people do it. Your parents can gift the money to you whenever they want no one can question that. You should have the money in your account before filling your eAPR. Attach a Gift Deed from your parents to you on a notarised stamp paper in your POF section. You will be good to go.

Hi,

So it doesn't matter when I get the funds as gift right.
It can be done one week before my docs are submitted for filing.

But in case of FDs, it should be maintained for 3 months in your account.

 

[liverpooligan]

Golden rule of Gift Deed : 1 person - single transaction(preferably account to account wire transfer) - under 10 lakh(to avoid income tax)
If you're receiving donations from multiple people, deposit all the money to your parent's/sibling's account and then ask them to transfer all the money to your account in a single transaction.
And most importantly, the Canadian government has absolutely no legal right to ask the gift donor for his/her source of funds.

 

[syedzafferullah]

Hi

A quick question:

1) Is gift deed from Father-in-law accepted as POF by CIC?

A quick reply will be much appreciated.

Thanks

 

[liverpooligan]

Hi

A quick question:

1) Is gift deed from Father-in-law accepted as POF by CIC?

A quick reply will be much appreciated.

Thanks

yes

 

[ulka0410]

Will the entire amount for pof from the giver as a gift deed be taxable as per Indian law? I wish to create a gift deed but my husband is reluctant as he says that the amount will be taxed if we create a gift deed.

 

[liverpooligan]

Will the entire amount for pof from the giver as a gift deed be taxable as per Indian law? I wish to create a gift deed but my husband is reluctant as he says that the amount will be taxed if we create a gift deed.

As far as i know, if the donation is less than 10 lakh, it won't be taxed

 

[dandangel]

https://taxguru.in/income-tax/taxability-gifts-received-relatives-relatives.html

Read the section titled: Gifts received From Relatives, NO Tax if its a relative.

I've used it,

1) Took money as gift from my dad, two days before submitting my application, got a gift deed + affidavit done mentioning the gift is without any consideration (meaning dad has no intention of getting this back). Also mentioned the NEFT transaction no. amount, date.

2) Then next day, all that I did was get a bank (HDFC) letter/statement that mentions my name, account, date of account opening and total liquid cash available in CAD (inclusive of the gift). Also, got last 6 months statement from the bank with stamp(not online statements). Yes, of course, the gift amount was the last entry in it.

3) Took pdf statements of credit card, last 6 months.

4) in POF scanned uploaded 2+3 in a single PDF.

4) Wrote a Letter mentioning gift from father (pure love and affection etc.) wrote it as an appeal/request to consider it, and attached gift deed. Made sure to call out the date and transaction on the bank statement and co-related that with the gift amount on the gift deed (page/line etc.) explicitly, in a hope that they don't miss it. Attached this letter + 1 as a single PDF into the Letter of Explanation section.

Went through the whole process without a hitch. Although, I did order GCMS notes around month 2 to see if any notes were made. Nothing came up at all. They just wrote a note saying (Total Amount - Credit Card last statement) is the available funds. And mine was well above the min. req. so all cool..

Hope this helps you.

Will the entire amount for pof from the giver as a gift deed be taxable as per Indian law? I wish to create a gift deed but my husband is reluctant as he says that the amount will be taxed if we create a gift deed.

 

[Shreyaa003]

I second that, I too had the money post ITA. No issues.

Hi ,
I am.facing similar problem too. Dont have funds for POF. Can we take money from parents and show as gift deed with notary?

Plz let us know soon, we already have the ITA.

Thanks,
Shreya

 

[Shreyaa003]

https://taxguru.in/income-tax/taxability-gifts-received-relatives-relatives.html

Read the section titled: Gifts received From Relatives, NO Tax if its a relative.

I've used it,

1) Took money as gift from my dad, two days before submitting my application, got a gift deed + affidavit done mentioning the gift is without any consideration (meaning dad has no intention of getting this back). Also mentioned the NEFT transaction no. amount, date.

2) Then next day, all that I did was get a bank (HDFC) letter/statement that mentions my name, account, date of account opening and total liquid cash available in CAD (inclusive of the gift). Also, got last 6 months statement from the bank with stamp(not online statements). Yes, of course, the gift amount was the last entry in it.

3) Took pdf statements of credit card, last 6 months.

4) in POF scanned uploaded 2+3 in a single PDF.

4) Wrote a Letter mentioning gift from father (pure love and affection etc.) wrote it as an appeal/request to consider it, and attached gift deed. Made sure to call out the date and transaction on the bank statement and co-related that with the gift amount on the gift deed (page/line etc.) explicitly, in a hope that they don't miss it. Attached this letter + 1 as a single PDF into the Letter of Explanation section.

Went through the whole process without a hitch. Although, I did order GCMS notes around month 2 to see if any notes were made. Nothing came up at all. They just wrote a note saying (Total Amount - Credit Card last statement) is the available funds. And mine was well above the min. req. so all cool..

Hope this helps you.

Hi,

So gift deed from parents in account plus 6 months statements from both our accounts(me and husband) with LOE will work right?

We have ITA, we were tensed on collecting funds since we don't gave sufficient funds.

Please confirm if we can go by this process and it will work.

Thanks,
Shreya

 

[dandangel]

Hi,

So gift deed from parents in account plus 6 months statements from both our accounts(me and husband) with LOE will work right?

We have ITA, we were tensed on collecting funds since we don't gave sufficient funds.

Please confirm if we can go by this process and it will work.

Thanks,
Shreya

See my timeline in the signature and the last lines of my post...

 

[liverpooligan]

https://taxguru.in/income-tax/taxability-gifts-received-relatives-relatives.html

Read the section titled: Gifts received From Relatives, NO Tax if its a relative.

I've used it,

1) Took money as gift from my dad, two days before submitting my application, got a gift deed + affidavit done mentioning the gift is without any consideration (meaning dad has no intention of getting this back). Also mentioned the NEFT transaction no. amount, date.
Gift deed and affidavit are 2 different documents?

2) Then next day, all that I did was get a bank (HDFC) letter/statement that mentions my name, account, date of account opening and total liquid cash available in CAD (inclusive of the gift). Also, got last 6 months statement from the bank with stamp(not online statements). Yes, of course, the gift amount was the last entry in it.
If the bank account of the applicant is in a country other than canada, is it compulsory to mention the amount in C$? If yes, which website should the applicant use to convert (xe or oanda or bankofcanada or some other site) since different websites have slightly different exchange rates?

3) Took pdf statements of credit card, last 6 months.

4) in POF scanned uploaded 2+3 in a single PDF.

4) Wrote a Letter mentioning gift from father (pure love and affection etc.) wrote it as an appeal/request to consider it, and attached gift deed. Made sure to call out the date and transaction on the bank statement and co-related that with the gift amount on the gift deed (page/line etc.) explicitly, in a hope that they don't miss it. Attached this letter + 1 as a single PDF into the Letter of Explanation section.
What exactly do you mean by "call out"?

Went through the whole process without a hitch. Although, I did order GCMS notes around month 2 to see if any notes were made. Nothing came up at all. They just wrote a note saying (Total Amount - Credit Card last statement) is the available funds. And mine was well above the min. req. so all cool..

Hope this helps you.
And finally, would you mind sharing the LOE(with your personal info redacted)?

 

[dandangel]

@liverpooligan

Gift deed and affidavit are 2 different documents?
YES

If the bank account of the applicant is in a country other than canada, is it compulsory to mention the amount in C$? If yes, which website should the applicant use to convert (xe or oanda or bankofcanada or some other site) since different websites have slightly different exchange rates?
It's preferable to mention amount in CAD. Most reputed banks already have a fixed format, they have been dealing with this scenario for ages now. And as long as you are clear with them the purpose (Immigration) and request to put it in CAD they should not have a problem. Do take a few mins and the pain to talk to your bank manager, worth it. I did.

What exactly do you mean by "call out"?
Mention or talk about your situation in as many words as possible so the the person reading understands you completely.

And finally, would you mind sharing the LOE(with your personal info redacted)?
Here it is: http://bit.ly/LOE_Proof_of_Funds