NRI INCOME TAX

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 February 2011 I am NRi working in Singapore for last15 years, i transfer and fd of total amounting to 25 lac (10+15) as domestic fd account in jan 22 this year with SBI for a period of 8 years to my mother who is housewife in India . i plan to income tax return with effect for the year 2011-2012
I write to ask if tax return to be filled by mother that have any income tax issue as all the fund from me transfer to her to earn more interest

Should ask bank to issue certification for interest earned on subjected fds for the whole year.

REgards

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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01 February 2011 You may show the amount transferred -as Gift to Your Mother which is exempt from tax in respective years.
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On Accrual Basis, your mother can show the interest income.
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For interest amount, you may get periodical statements from the bank or yearly certificates.
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Your mother may get refund of tax,after filing her return, if any tax is being deducted by the bank.

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Querist : Anonymous

Querist : Anonymous (Querist)

02 February 2011 Dear Bafna

first of all thanks a lot for your advise, further i have a new question if any documentation to be done for such transfers so know as gift in my case if so what to be done.

Regards

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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02 February 2011 In case of gift to close relatives even plain writings or declarations will do.

The amount received by your mother had got a well explained source , which can not be treated as income.

Hence the AO whenever demands any proof you may submit the documentary evidences, having reflections of transactions.

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