Interest on gifted amount

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This query is : Resolved

rl334709 (Querist)

26 September 2014 If a father transfers a money amount , as a gift (without making any written gift deed), into his 26 years old son's bank account through a cheque of his own bank a/c, and then the son makes f.d. of that amount and earns interest on f.d., then in whose IT return, the interest amount should be shown as income?

Will interest amount be clubbed in father's income?
Or should it be shown as son's own income in son's IT return ?

Is it really necessary to make a gift deed even if the amount is transferred through cheque ?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

26 September 2014 The income from the FDR will be shown as son's own income.
.
It is advisable to make a Gift Deed, so as to justify that the amount is Gift and not a loan or income of any kind.
.

rl334709

rl334709 (Querist)

27 September 2014 Thank you ,Sir.

But ,Sir,

if the father had given(transferred) such gift of money amount in f.y. 2013-2014, and they make the Gift deed for that transaction in the f.y. 2014-15, then whose income , the f.d. intetest of f.y. 2013-14 ( the period from the date of actual money transfer transaction, to the date of gift deed made) will be ?

( I mean,Will the whole amount of f.d. interest for all the years including the period before and after the date of giftdeed made, be the son 's income ? Even if the Gift Deed is made at any later date ?
from the actual transaction date ?

And

If a gift deed is made on Rs.100 stamp paper, then should it be just notarised with any approved Notary ?

Or should it be registered with the sub-registrar ?

Please, give your kind guidance.
Thanks.

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