Gift tax applicability
This query is : Resolved
R N Gajendragadkar
(Querist)
05 January 2009
My father-in-law desires to gift a large sum to my minor daughter. The amount has already been taxed in his hands as income.
I would like to know whether this amount is likely to be taxable in my hand.
Alternately, can he gift this amount to my HUF / my wife.
I would like to know whether this amount is likely to be taxable in my hand.
Alternately, can he gift this amount to my HUF / my wife.
K V Subba Rao
(Expert)
05 January 2009
Congrats
Amount gifted by you F-n-L either to your wife or daughter or HUF does not attract Income Tax
However, interest or any other type of income EARNED THEREON only will be taxable (i) in your assessment, if gift is given to your minor daughter (ii) in your wife's assessment, if gift is given to your wife.
It is suggested that your F-n-L give gift to your wife
I am not sure whether a HUF can be created for the purpose. So await other Members' views
Amount gifted by you F-n-L either to your wife or daughter or HUF does not attract Income Tax
However, interest or any other type of income EARNED THEREON only will be taxable (i) in your assessment, if gift is given to your minor daughter (ii) in your wife's assessment, if gift is given to your wife.
It is suggested that your F-n-L give gift to your wife
I am not sure whether a HUF can be created for the purpose. So await other Members' views
R N Gajendragadkar
(Querist)
07 January 2009
Thanks for the reply. The HUF is already in existance. What I desire to do is to invest in the name of the daughter in some bonds or a liquid mutual fund & hold the same till she turns major. Will that avoid income earned thereon being taxed in my/spouse hands.
Dhirajlal Rambhia
(Expert)
24 June 2023
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