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Income tax rule for money given to un-married daughter

Keshava Saxena (Co-ordinator) (21 Points)

02 December 2016

Sir, please note that the father want to give money say Rs. 10.00 Lac to his un-married daughter of 25 years old, will it be taxable in daugter hand. Read more at: /default.asp

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8 Replies

gunturboy26 (Self Employed) (217 Points)
Replied 02 December 2016

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.

Jyothsana Hima (2 Points)
Replied 02 December 2016

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

CA Pallav Singhania (❤ Work Hard Party Harder ❤) (32322 Points)
Replied 02 December 2016

No tax on cash gift or any gift in kind given by father to his daughter.

Income tax slab (in Rs.)

0 to 2,50,000 No tax

2,50,001 to 5,00,000 10%

5,00,001 to 10,00,000 20%
Above 10,00,000 30%
India Income tax slabs 2016-2017

MANOJ A (Passion) (52 Points)
Replied 02 December 2016

I Agree with Pallav and gunturboy..

sahil (student) (127 Points)
Replied 02 December 2016

But interest income will be clubbed in the hands of father

gunturboy26 (Self Employed) (217 Points)
Replied 02 December 2016

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%

gunturboy26 (Self Employed) (217 Points)
Replied 02 December 2016

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.

CA Suresh Jain (Proprietor) (8981 Points)
Replied 04 December 2016

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