High Value Monetary Bank Transfer from Spose to be Delated in ITR under Exempt Income or NOT ?

My 75 years Father transferred 40 Lacs to My Mother 71 years for her financial security in his absence through bank Transfer  .

My Mother invested 40 lacs in new  FD .

Amount is reflecting in her SFT 005 purchase of Time Deposits

I am aware gift and transfer from  Specified Relative  is Tax free

As the amount is high and already reflecting in SFT as compared to the amount in her past  filed  ITR ,  it may attract scrutiny or Notice 

Do I need to declare it proactively under exempt income of her ITR 1 to avoid unnecessary complication to my old parents .

Your kind advise is Welcome to help my parents and there are different views on this over internet and CAs i consulted some say declare in ITR some say Nor required 

Replies (2)
Quick Summary
A user is seeking advice on whether a substantial bank transfer of £40 lakhs from their father to their mother, intended for her financial security, needs to be declared as exempt income in her Income Tax Return (ITR). While gifts between specified relatives are generally tax-free, the large amount and its appearance on the Statement of Financial Transactions (SFT) raise concerns about potential scrutiny. The user wants to proactively declare it to avoid complications for their elderly parents, despite conflicting advice from various sources.

Always safe to declare it in her ITR. But be aware that the interest earned on the FD will be taxed in your father's hand, due to clubbing provision.

Please declare and disclose

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register