Abhijit Ghosh (.) (618 Points)
18 June 2013A tax payer has received Rs. 1,50,000/- from his father on 17.12.2012 as a Gift and the tax payer have taken 3yrs Fixed Deposit of this amount with monthly interest which he enjoy it. The bank deducting TDS on interest on monthly basis from tax payer.
My query, whether the tax payer require to pay any capital gain tax or any other tax on this amount which he have received from his father?
Please advice. Advance Thanks to all.
CA Amit Gopani
(CA Practice)
(38 Points)
Replied 18 June 2013
no gift, But interest may be taxable in the hands of father , since receiver invested fund in fixed deposit , and so interest is taxable , if minimum lock in period is kept , then may be get deduction u/s 80c.
Vignesh
(Student)
(34 Points)
Replied 18 June 2013
hi frnds.......... clarify my doubt..........
As said by CA Amit Gopani "But interest may be taxable in the hands of father".
Interest income suffered TDS and received by tax payer.
if so, same income taxed twice, is it right????
Ashok J
(CA Final)
(880 Points)
Replied 19 June 2013
Hi,
If the father is gifting money, he has to give up his right on the money and also on the income accruing therefrom....If he doesnt, then it amounts to REVOCABLE transfer.....Only in the case of revocable transfer, income will be taxed in the hands of TRANSFERROR.......
Amber Jain
(Article Assistant)
(206 Points)
Replied 20 June 2013
Hello Abhijeet,
As per Sec 56(2)(vii) of the Income Tax Act 1961 any sum of money received, without consideration the Aggregate value of which exceeds Rs 50,000 the whole of aggregate of such sum is taxable but this clause is not applicable to any sum of money received from relative & father is covered in such definition.
So you are not required to pay any tax on such receipt.
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