Hello,
I've been reading about saving income tax through making gifts to parents as dictated by section 56. Though there are a few doubts that linger:
1) If i transfer an amount of 10k pm to my mother who is a home maker, what should be the action to be able to show it as a gift . In all the examples i read up, they had invested in fixed deposits after transferring, which made the amount tax exempted even from the income of transferor. Can similar theory be applied to recurring transferes, whhich are being invested as RDs in my mothers account ?
2) How can gift deeds be executed for the aforementioned example. Will the stamp paper action be necessary?
3) How do I state it in my e-filing form, now that they insist no other document is to be enclosed.
4) Just to clear ; by exemption I mean the amount being exempted from my salary and due to it being less than 1.9 Lacs, being exempted from my mothers too at the same time.
Thanking in anticipation
CAclubindia
