Tax liability on interest income

This query is : Resolved

Deepak suri (Querist)
Follow

16 August 2017 My mother gifted 5 lakh Rs to my wife (Mother in law to daughter in law). What is the Tax liability on the interest earned from bank on this amount.In whose hands shall the interest income be taxed.Is there any requirement of a gift deed.

RAJA P M

RAJA P M (Expert)
Follow

17 August 2017 Interest income's tax liability in your Your wife's hand..... Yes gift deed is required. Then only it's treat your wife's name.

ABHISHEK GARG

ABHISHEK GARG (Expert)
Follow

17 August 2017 Agreed with Raja Ji, but practically speaking Deed is not required.
Still you can get it drafted for your future reference.

CA Suresh Jain

CA Suresh Jain (Expert)
Follow

17 August 2017 For future reference a communication from your Mother to your wife giving detail of mode of gift is advisable to be prepared. Also preserve copy of bank account of both showing the entry of payment and receipt of Rs. 5,00,000.00. A formal Gift deed not stamp paper is not necessary.
N Jain
group.blr@gmail.com

Deepak suri

Deepak suri (Querist)
Follow

17 August 2017 Thanks Mr Raja, Mr Garg and Mr Jain for your valuable advice.