Taxation on Gift

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This query is : Resolved

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Gifts received by a mother in India from her NRI son are generally tax-free, even when transferred via a registered gift deed. The income generated from investing this gifted money, such as interest or maturity benefits from bonds and debentures, will be taxable in the mother's hands according to her income tax slab. This income will not be clubbed with the NRI son's income.

GJ Consultancy

GJ Consultancy (Querist)
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14 July 2021 Hello experts, please advise me on following.
My NRI friend wants to gift approximately 35 Lacs to his mother resides in India via registered gift deed and his mother will invest this money in bonds / debentures etc. Than how taxation will be imposed on both transactions ? ( on gift and on interest or maturity benefits on bond etc )

Deepa B

Deepa B (Expert)
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15 July 2021 Gift from a relative is not taxable. But interest earned from investing the said amount in debentures and bonds becomes taxable.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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11 October 2021 Yes, here the gift received by mother from son will be taxfree.
At the same time income will not get clubbed.
I.e. the interest or gains from the FD or bonds etc. will be assessed in the hands of mother at her slab rate. It will not be taxed in the hands of NRI son....

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