I got a query as below; Husband works for a software company with 30% tax bracket and his wife who is a house wife with no income, her father wants to give some money( actually there are some FD which are getting matured in total 20Lacs)to his daughter.
Now the concern of husband is,
1. what will be the tax implication on this transaction? And on whom ? 2. if the TDS has been deducted on the FDs, still the daughter has to pay taxes ? 3. What will be right way of transfer of this money, I mean, Cash, Cheque, DD, or online transfer ? 4. Will such funds will be treated as income, and required to be filed income tax ? Will it also get clubbed with husband income. 5. Is there and gift deed or transfer deed needs to be prepared ?
Dear experts, kindly give any valuable and pertinent input on this.
15 August 2012
The details of gift tax would be provided by some one else but my immediate suggestion is to consult a good chartered accountant since gift tax is payable and an income tax return would be required to be filed.
I shall separately provide more detailed technical information.
CAclubindia
