Treatment of tax on Income earned on gifted money

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This query is : Resolved

RV (Querist)

21 January 2009 I am making a regular payment(without any obligation) of Rs. 50,000.00 per annum to my mother. She deposits the money in fixed deposits in bank. Can the AO treat the intrests that is earned on these fixed deposits as my income instead of my mother's. Is there any provision in law regarding the same?Pls guide.

K V Subba Rao

K V Subba Rao (Expert)

21 January 2009 Interest earned on FDs made in your mother's name is NOT includible in your GTI.

Clubbing provisions are not applicable

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https://www.associatedcontent.com/article/1194909/deposits_in_indian_banks_respect_parents.html?cat=3

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)

24 January 2009 Payment without consideration can be considered. Please check.

K V Subba Rao

K V Subba Rao (Expert)

25 January 2009 I have since checked by referring to provisions of Sec 56(2)discussed in Para 77.5 of 29th edition of Singhania's Ready Reckoner and find that "gift" from son to mother is covered under Exceptions; hence feel that view expressed by me on 21st Jan 09 is correct

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