Taxation of MIS

This query is : Resolved

nishant (Querist)
Follow

27 July 2010 Sir,
I've a query. The matter is that one person has deposited certain amount of money in the name of his son(say "X") & daughter-in-law(say "Y") under the Postal MIS.

After a period of 6 years X & Y gets the total some of Rs. 113000 & Rs. 115000 respectively.

Now the query is :
(1) What would be the treatment of maturity amount in the hands of X & Y ?

(2) Can we treat the amount received as gift?

Early reply in the matter is awaited.

Thanking you,

With Regards
NISHANT.

Rasesh

Rasesh (Expert)
Follow

27 July 2010 Interest on MIS is taxable.

If you treat the MIS as a gift, then also the interest would be taxable in your hands.

Nirpendra Singh

Nirpendra Singh (Expert)
Follow

27 July 2010 YES
it would be treated as a gift and subject to tax.

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

27 July 2010 First of all investment must have been shown in someones books of accounts then only u can gift.

On maturity interest will be taxable.

If investment in MIS never shown in anyones books then whole sum will be taxable.

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