Say I have some Fixed deposits which have been accumulating interest. If I gift the entire FD to my children without closing it,is there any tax implication? Must I pay taxes on the interest accumulated up to that point?
kannan (none) (97 Points)
07 August 2012Say I have some Fixed deposits which have been accumulating interest. If I gift the entire FD to my children without closing it,is there any tax implication? Must I pay taxes on the interest accumulated up to that point?
CA. Subhash Dangi
(Chartered Accountant)
(1784 Points)
Replied 07 August 2012
As long as FD is in your name, U will be taxable.
If u gift your FD to your children, then also u are taxable since your children income will be clubbed with your income (being a Guardian) and accordingly U are liable to tax on interest income.
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 07 August 2012
despite of gift, the interest will be clubbed to your income.
Chanchal Kumar Chakraborty
(2 Points)
Replied 23 December 2017
If i gift it tomy married daughter, will the position remain the same?
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