Income tax rule for money given to un-married daughter

A father can give any amount to her daughter, married or unmarried does not make any difference. The amount is considered as a gift. If the daughter invests this gifted money and gets interest, then only the interest is taxable but not the principal amount. If she does not have any other income except this interest and if the interest is less than 2.5 lacs, she does not have to pay any tax.

Professionals please correct me if i am wrong.

This is very clear answer please mention here what is the rate of tax on that.above 2.5 lac  an rate interest 

I Agree with Pallav and gunturboy.. 

Originally posted by : Jyothsana Hima
	This is very clear answer please mention here what is the rate of tax on that.above 2.5 lac  an rate interest

Thank you.

Upto 2,50,000 no income tax.

From 2,50,000 to 5,00,000 tax is at 10%

From 5,00,000 to 10,00,000 tax is at 20%

Any amount beyond 10,00,000 tax is at 30%

Originally posted by : MANOJ A
	I Agree with Pallav and gunturboy..

Thank you.

Originally posted by : sahil
	But interest income will be clubbed in the hands of father

I think it will be clubbed only if the daughter or son is a minor.

The transfer is not taxable and income also not clubbable. The income from the amount transferred should not be used by her father or mother. For more detail and understanding please read section 64 of the Income Tax Act