Taxability of interest received on money received as a gift

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 August 2013 Dear sir,

I have received a gift of Rs. 6 lacs by cheque from my mother. My mother was a school teacher in government school. She had got retirement before 3 to 4 months. She received around rs 9 to 10 lacs for gratuity and gpf. Now she has gifted me rs 6 lacs by cheque. I have made a fixed deposits for the same amount in a bank. I am a self employed and files my income tax returns.

Now my question is that whether interest earn on such fixed deposits will be taxable as my income or will be clubbed in my mother's income..?

CA Parul Saxena

CA Parul Saxena (Expert)
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19 August 2013 Gift received from a relative is fully exempted as you have received amount from your mother so Rs.600000 is fully exempted but interest earned on this amount is taxable as Income from other sources and the interest earned would be treated as your income only.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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19 August 2013 Since your mother gifted you the money it is not taxable as gift received from relative is exempted u/ 56(2).
The interest income received by you on FD is taxable in your hands as per income tax act and under income from other sources.

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