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Transferring Money to Mother and Father Separate Accounts - Taxable?

Swady (Digital World) (115 Points)

20 December 2020

Dear Experts, if I am transferring Rs 30k each to my Mom's account and Rs 30k to my Dad's account in a FY will my tax liability reduce by Rs 60k for that FY? OR is Rs 50k total that I can transfer to my parents in a FY?

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4 Replies

ayusmita (Tax consultant) (5885 Points)
Replied 20 December 2020

Transferring money to your mother and father is not taxable in hands of your parents but your whole total income is taxable after the exemption limit and Deduction in your hands or any income earned by them from those money by them then either those will clubbing with you if they are not working or filling return or if file return then they can show it if they working or getting pension or filling return

Swady (Digital World) (115 Points)
Replied 20 December 2020

Thanks for your response, Ayusmita. Here are my followup queries:

1. If my whole total taxable income comes at 5.5L but if I transfer 45k to my dad's account then will the taxable income come down to 5.05L ?

2. in total it is 50k? or per PAN 50k in a year?

Himanshu Shukla (2 Points)
Replied 21 December 2020

No you can't reduce your taxable income by transferring the money.

ayusmita (Tax consultant) (5885 Points)
Replied 21 December 2020

No your taxable income will not reduced

It will be same

And when we give gifts to blood relation there's is no limit of 50k you can give any amount to them but as per new rule it's should not exceed 2lakhs per a single person in a day even if you do lots of transaction

Above will be comes under IT scanner