FDR in name of Parents by Son

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K.G.Shah

K.G.Shah (Querist)
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19 September 2021 Sir,
Mr. A is the Senior Citizen having no pension income and depend on Interest Income. His Son "B" wish that , instead of meeting day to day expenses of Parents , wish to Deposit of 20 to 25 Lakh out of his own deposit. So that .......
1) Parents will get income by way of Interest. Also higher Interest rate benefit will get Query is ... Whether it will attract clubbing of income clause ? . To avoid what precaution to taken in writing. Gift in writing is required ? please guide

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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19 September 2021 No clubbing of income, when gift received from son.
Yes, better to make a gift deed, for future query, if any.

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K.G.Shah

K.G.Shah (Querist)
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24 September 2021 Sir , thanks for reply. Is their any specific format of Gift and required on bond paper ? .. Secondly if B ( son ) to deposit in his wife name , then also clubbing of income not attract.? Wife has no any source of Income.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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24 September 2021 1. No specific format, it can be consent of both the parties on Rs. 100/- stamp paper.
2. In second option clubbing provision gets attracted. Secondly no interest benefit for SCN can be availed.

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