Gift to daughter

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This query is : Resolved

jinesh (Querist)

20 September 2012 I am retired person . i have recd some Amount from my retirement. i have tranferred 50% amount to my both major daughters(unmarried) in their account and 50% to my wife. they have invested outside and earn Cash interest on that Amount.

Then can i become Responsible for Tax ?
or
Can i consider Amount transferred to my both major unmarried daughters as gift?

If Clubbing apply in my case then how and what amount i consider for tax ?

pls advice so that i can tax planning and Pay less tax as possible

they have invested the same Amount in one Constuction Business where that party Pay cash Interest to my wife and both daughters. this is just For your Information.

Prakash Kochar

Prakash Kochar (Expert)

22 September 2012 Interest received by major daughters from amount gifted by you will not be clubbed with your income but will be income in hands of your daughter.
Interest earned by wife from amount trans. by you as gift will be clubbed with your income u/s. 64.
Amount gifted will not be treated as income in hands of daughters or wife. If the amount is transferred as interest free loan to them position will be same as above, if no interest is paid by you by taking fresh loan to transfer.

jinesh

jinesh (Querist)

22 September 2012 i have considered Both major daughter's Interest Income which they received from outside to my return of Income becoz i have transferred the Amount to them and then they tranferred the same to outside. they recd Cash interest.and i have considered the Cash ineterest Income in my return and paid the Tax for A.Y.2011-12 and So what to do ? Am i correct? Both major daughters want to file their ITR for A.Y.2011-12 and I have clubbed the same in my ITR A.Y.2011-12 so what i do?

Prakash Kochar

Prakash Kochar (Expert)

23 September 2012 You can revise your return for AY 11-12 subject to conditions applicable like your original return was submitted in time u/s. 139(1).
Both daughter can file return including the interest income received by them.

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