Tax treatment of money given by father to major son

This query is : Open

Nitesh Kumar Sharma (Querist)
Follow

01 August 2014 Dear Experts,
Pls. discuss following query:

Father Mr. X gives Rs. 100000/- to his major son (Unmarried) on which son earns FD Interest of Rs. 1000/- per month.
Son has no other income.

What is the tax treatment in the hands of father & Son.
Will clubbing of income apply?

Thanks....

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
Follow

01 August 2014 Money gifted from father to son will not come under section 56(2)since gift received from relatives is exempt. so far as clubbing provisions are concerned, clubbing provisions will not apply as such transaction is not covered u/s 64 and since the child is also major, income accrues to him as interest on FD will be taxable in his hands only. Clubbing provisions would have applied had he been a minor.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

SHUBHANGI GOEL

Shailesh Prajapati

Adesh Mahajan

Angadi & Co

Jaipal Singh

Subscribe Now

Tax treatment of money given by father to major son

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

CA Final

GST CONSULTANCY

Article Assistant

GST CONSULTANT

Accountant

Manager- Finance and Compliance