Can I invest in the name of my parents/spouse for tax saving
This query is : Resolved
17 August 2020
Hello,
Is it possible that I can gift some amount to my parents or spouse and invest the same in share or any other instrument (FD, Mutual fund) with their name to avail tax saving and lower tax slab as I come into higher tax slab.
Thanks,
Manish
Is it possible that I can gift some amount to my parents or spouse and invest the same in share or any other instrument (FD, Mutual fund) with their name to avail tax saving and lower tax slab as I come into higher tax slab.
Thanks,
Manish
18 August 2020
Advance an interest free loan rather than a Gift.
18 August 2020
Hi Raj, I didn't get you completely. Can you please elaborate. I would appreciate if you can post some reference link also.
Thanks,
Manish
Thanks,
Manish
19 August 2020
In my View the interest earned will be taxed under clubbing provisions in the hands of Donor. It's is better that the parent independently invests the money if at all and maintain the details of amounts transferred and also some kind of gift document in case you get a notice
19 August 2020
@V K Vijayaraghvan Sir what is gift document. How to get it. You mentioned that if parent independently invest the money it's better. What do you mean by independent here ? Please elaborate. If my parent invest money in stock and get return will it be taxed under clubbing provisions ?
19 August 2020
Mr Manish
1. Keep some mail or letter for the gift given and maintain the details date etc .
2. Only the gift will not be taxed in the hands of the parent as they come under definition of Relatives
3. If they don't have any source of income at all then the interest will be clubbed with your income
4. One way is you can put first name and yours as oint name and the parent has to complete KYC
formalities like PAN etc with bank . Then they will be assessed as per law
1. Keep some mail or letter for the gift given and maintain the details date etc .
2. Only the gift will not be taxed in the hands of the parent as they come under definition of Relatives
3. If they don't have any source of income at all then the interest will be clubbed with your income
4. One way is you can put first name and yours as oint name and the parent has to complete KYC
formalities like PAN etc with bank . Then they will be assessed as per law
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