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Gift received as fd taxability

(Guest)

Dear Members,

I have a query which I was not able to get on google as well.

In 2008, an amount of 100,000/- was invested by a father in Shriram P Ltd (Double Bond).

It was transfered to his married daughter in the year 2013.

The maturity amount of Rs. 200,000/- was received by the daughter, who is the assessee in the AY 2014-15.

Pl guide me about the taxability for the assessee ASAP.

Thanks.

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6 Replies

Vishal Goel (Chartered Accountant) (1688 Points)
Replied 15 March 2015

Hello,

Income of the minor daughter (whether married or unmarried ) shall be clubbed with the income of parent under section 64(1A).

Vishal Goel (Chartered Accountant) (1688 Points)
Replied 15 March 2015

If the daughter is major then clubbing provision not apply. It will be taxable in her own hand.

Vishal Goel (Chartered Accountant) (1688 Points)
Replied 15 March 2015

Section 62 in the Income- Tax Act, 1995 (Irrevocable Transfer of Assets)

Where an asset is transferred to any person

1. by way of trust which is not revocable during the lifetime of the beneficiary, OR

2. in the case of any other transfer, which is not revocable during the lifetime of the transferee;

then all income arising from such asset, shall be included in the income of the transferee and not in the income of the transferor. This shall apply only if the transferor derives no direct or indirect benefit from such income in either case.

As per above rule clubbing provision not apply if gift received by major daughter.

1 Like

vijay singla (learner) (340 Points)
Replied 15 March 2015

interest upto date year 2013 is chargable in the hands of father and balance in the hands of daughter(only interst for 2014).rest amount is exempted under section 56.

Rajesh (Former Director DRDO) (114 Points)
Replied 28 March 2015

Interest income paid/ accumulated on 100000/- from 2008 to 2013 ( till the date it was gifted) will considered income of Father, rest of the interest i.e. From the date of gift to date of maturity of FD will be considered Daughter's income. Total Interest will be Rs. 100000/- as the FD was of Rs 100000/-. FD amount + Interest part of Father will be considered as gift amount and in this case no further tax liability (i.e. Gift Tax). Any income now onwards on Rs 200000/- will be taxed to daughter.