Gift tax
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
24 April 2012
Sir, I am earning about 4.5 Lacs per annum. Upon which I am giving Income TAx as per LAW. However, from this amount I am saving moderately. Now my question is that If part fo this amount I give to my father,mother and wife as a gift and they later on earn interest on this amount by way of FD or otherwise then whether
(1) The amount given by me to my parents are TAXABLE or NOT
(2)IF the interest earned by them or any other income earned by them is TAXABLE nor NOT. Please inform
(1) The amount given by me to my parents are TAXABLE or NOT
(2)IF the interest earned by them or any other income earned by them is TAXABLE nor NOT. Please inform
Dintakurthi Tirumala
(Expert)
24 April 2012
1) Gift given by you to you parents or spouse is exempted from tax in their hands.
2) According to the clubbing provisions interest or any other income earned by them from such gift amount shall be taxable in your hands. However for this some exemptions is their.
My suggestion is better to Approach any CA he suggest you how to escape income from you hands depending on the exceptions and possible ways.
OM SAI SRI SAI JAI JAI SAI
2) According to the clubbing provisions interest or any other income earned by them from such gift amount shall be taxable in your hands. However for this some exemptions is their.
My suggestion is better to Approach any CA he suggest you how to escape income from you hands depending on the exceptions and possible ways.
OM SAI SRI SAI JAI JAI SAI
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25 April 2012
1.Gifts to parents not taxable in either hands.
2.Clubbing provisions will not applicable , hence any income( interest or others) will be added to their income.
However in case of revocable transfer(section 61) i.e ransferor of asset assumes a right to re-acquire asset or income from such an asset, either whole or in parts at any time in future, during the lifetime of transferee. It also includes a transfer which gives a right to re-assume power of the income from asset or asset during the lifetime of transferee.
In such case income will be clubbed in your hands.
2.Clubbing provisions will not applicable , hence any income( interest or others) will be added to their income.
However in case of revocable transfer(section 61) i.e ransferor of asset assumes a right to re-acquire asset or income from such an asset, either whole or in parts at any time in future, during the lifetime of transferee. It also includes a transfer which gives a right to re-assume power of the income from asset or asset during the lifetime of transferee.
In such case income will be clubbed in your hands.
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