Transfer of money via gift to family & income thereof
This query is : Resolved
Charmi Devani
(Querist)
25 April 2018
I wanted to decrease my interest income to avoid the tax slab for which I was planing to transfer a certain amount from my salary income to my family member so that they can invest the same on their name and the interest income will be taxable in their name and not mine. Can I do that as per income tax law?
25 April 2018
You may do so, but the recipient should be a relative as defined in explanation to
section 56(2)(vii), otherwise the gifted amount will also be taxed in the hands of the
recipient per section 56(2)(x).
section 56(2)(vii), otherwise the gifted amount will also be taxed in the hands of the
recipient per section 56(2)(x).
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