Car for parents - tax implications and best way

incometaxquery (Software Engineer) (59 Points)

14 October 2018  

We wish to buy car for father in his name. What options do we have in terms of mankign sure that we are on the right side from taxation purposes

  1. Should I transfer 5 lakhs for car in his account and he buys the car? OR
  2. Should I transfer 5 lakhs to the dealer but get the car registered in his name with his PAN details and other details?

Would I, his son, need to have a deed signed?

How would both of us have to show this in the ITR?

Should I be transfering 5 lakh in one go or have to split it into multiple transactions or it does not matter?