if one is making a fixed depoist for parents as they are senoir citizen, of a large sum do i need to make a gift deed to avoid clubbing of income
what will be the gift deed stamp duty cost assuming its delhi .
kabir (owner) (61 Points)
15 July 2018if one is making a fixed depoist for parents as they are senoir citizen, of a large sum do i need to make a gift deed to avoid clubbing of income
what will be the gift deed stamp duty cost assuming its delhi .
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160998 Points)
Replied 15 July 2018
First of all..... when you gift any amount to your parents........ its taxfree in their hands, at the same time no clubbing provision as per IT act.
The interest earned over FD will be taxed in their respective hands and not in your hand.
Secondly, no stamp duty over any gift deed when any cash (or movable asset) is gifted by any banking mode. No need to register; you may notarize it.....
kabir
(owner)
(61 Points)
Replied 31 August 2018
hello sir
sir, can the gift of fixed depoist to parent for a large sum of transfer by banking channel (RTGS), can it be break down and can be given in 3 or 4 parts in there account so not to attract high value transation, after which they created fixed depoist for it.
is it still consider as money gifted to parents by children as fixed deposit and not as a transfer
sir basically lot of people suggest that if you want to make a FD as gift to parent one should book the FD in a single transaction to show it as gift but others say that a large value transaction create unnessary attention so go for small amount. which is correct.
sir if you can provide what method should be taken to avoid department attention and still qualify as gift to parent it will be very help just like all the great advice you have given to all of us..
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160998 Points)
Replied 31 August 2018
First of all. you are gifting cash (of course, through banking channel) but not FD.
Your parents can book (the tax-exempt gifted) amount in bank FD.
So, if you have capital (i.e. enough bank balance) which is already tax-paid, there is no harm to gift it at a stroke or in parts.
You are owner of the capital, and are at liberty to spend the amount the way you like. On the contrary you are performing an adorable act of gifting the amount to your parents for their good cause!! Appreciate it, really.
Practically, people do such act in parts, to avoid attention of department, but if you have no reason to hide anything why fear....... Are we still under British rule??
Or have you deposited any unaccounted cash in your bank account???
kabir
(owner)
(61 Points)
Replied 31 August 2018
thank you sir i really appreciate you prompt and practical and sensible advice, as always your ability to
understand the question in light of practical aspect make me your great admirer and have a deep respect for you.
what ever i am is because of my parents hardwork & sacrifice.they are my world.
in this case i have earned it by paying LTCG tax on a immovable property with a clear intention to gift my parents FD
but as you meet different people with different opinion a common person get scared as the last thing i want for my parent is a tax
department notice so i decided to give then in small quantity and they will book the FD for it, but someone say that is not correct
as you are transfering money to them not FD so that could mean that you are doing to reduce your tax liabilty or department will
not consider it as a gift altogether, and that got me scared and brought me to you.
you are a great human being sir.
thank you once again
CAclubindia
