Can i gift money to minor child

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Tarun (Querist)
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04 May 2016 Hi,

I have opened a new bank account for my minor child. He is 4 months old.

Can I gift money to him and the income generated from the gifted money will be clubbed to my income or no?

Awaited a response.

Regards,
Tarun.

CA CMA CS Ram Pavan Kumar Melam

CA CMA CS Ram Pavan Kumar Melam (Expert)
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05 May 2016 Yes you can gift the amount to your child. Gift to a relative is not taxable [Ref section 56(2)(vii)]. The interest income of your minor child shall be clubbed into your income as per section 64(1A). There is an exemption up to Rs. 1,500 per child whose income is so included, as per section 10(32).

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Tarun

Tarun (Querist)
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05 May 2016 Dear Sir

Can i gift money to my mother and can I accept gift from my father.

what will be the tax situation of both.

Thanks.