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FUNDS TRANSFER FOR TAX PURPOSE

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Me and mother file ITR each year and She pays more tax than me . She wants to transfer Rs 50 lacs (via cheque) from her Indian bank account to my SBI account . (The purpose is reducing income tax on her) .

Q1-- ...Will their be any tax related issue if she transfers this much money to my account ??

Q2-- will it be better if she pays me all the amount in one go or in small amounts periodically???

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Quick Summary

This discussion addresses the tax implications of a mother transferring Rs 50 lakh to her child's bank account to reduce her income tax. The consensus is that such transfers between close relatives are not taxable. It's advised to document the transfer as a gift, potentially with a gift deed, and that periodic transfers are generally preferable. The method of transfer (cheque vs. instalments) is considered less significant than the nature of the transaction as a gift.