Gift tax or any tax

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A son working in the USA gifted his mother cash after closing a fixed deposit in India. The mother deposited the cash into her account and started her own FD. The discussion confirms that this cash gift is exempt from tax in the UK as it is less than £2,000 (assuming the aggregate cash gifts in the year do not exceed this amount). It should be declared under the exempt income schedule in the Income Tax Return (ITR).

sundeep

sundeep (Querist)
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02 August 2020 My son had an FD in Indian bank. son is working in USA.
This year he declared himself NRI in July 2020. prior to this, he got his account in a nationalized bank converted from regular to NRO in June 2020. Prior to conversion in Jan20, he closed an FD for Rs.154154/- and withdrew the cash and deposited to my account and I started an FD for the same amount. Can my son give me his money as gift without any tax implication?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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02 August 2020 Yes your son can give you his money as gift without any tax implication.

sundeep

sundeep (Querist)
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02 August 2020 THE AMOUNT WAS DEPOSITED IN HARD CASH IN MY ACCOUNT. BUT SAME TO SAME AMOUNT WAS WITHDRAWN FROM HIS ACCOUNT SAME DAY AFTER CLOSING FD. SO THERE IS NO DIRECT LINK TO PROVE. SO WHETHER I CAN CLAIM IT AS A GIFT AND HOW TO TREAT UNDER ITR

sundeep

sundeep (Querist)
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