My mother wants to give 30lakhs to my sister to save her tax occuring due to interest income.
My sister will invest it in FD or bonds and keep interest earned with herself.
Is this permissable? I read that my mom can transfer this amount to sister as gift and no deed is needed. My sister will show this amount in exempt income in itr. Whether interest earned by my sister will be clubbed with mom's income ?
Based on info I've collected till now, it must be fine. Gift to daughter-> she'll invest it--> whatever interest she earns sister only will show in her itr and pay as per her bracket.
Please provide clarification. Thank you
CAclubindia
