Income from gift received

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Querist : Anonymous

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Querist : Anonymous (Querist)
14 June 2015 A mother gifts her 2 children Rs. 10 Lakhs each.

Both the children invest Rs. 10 Lakhs in FD's @ 10% Thereby earn Rs. 1 Lakh each.

Is the 1 lakh earned by children accounted as their income or clubbed with the income of mother

14 June 2015 If the children are minor, then only it will be clubbed.

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Querist : Anonymous

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Querist : Anonymous (Querist)
14 June 2015 The children are major and tax payers

14 June 2015 Then it will not be clubbed.

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Querist : Anonymous

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Querist : Anonymous (Querist)
14 June 2015 Can you please quote the provision?

14 June 2015 See the link.
https://www.caclubindia.com/forum/gift-to-major-son-177613.asp#.VX0k3_mqqko


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