Gift - monthly fixed amount to Minor children

Firstly the money is transferred by you

As it is out of taxable income or 'White Money' earned by you and not by anybody else.

It is valid and no other tax is applicable

Because double taxation is completly against the nature of law

Hope the above answer solves your query

Thanks Mr. Praveen for your quick reply.

The Gift Tax question is still unanswered:

1) Both children are getting gifts of Rs. 60 Thousand each per year. Is there any limit prescribed for Gifts which is exempt from Gift Tax.

2) I am giving Gift fixed amount every month without any special occassion. If there are the chances to treat this as other payments instead of Gifts.

3) Should I maintain any document relating to gift. If yes, then what document and if it can be one for the whole year or need to be maintain separate for each transaction.

Thanks and Best Wishes

Ganeshi Lal Agarwal

1)  Nothing is taxable as u r relative, so exemption provided and already included in ur income

2) no need of limits here

3) No documentation required

4) but when these SIP plans get matured ,then income from these plans will be clubbed in ur hands.

Regards

if ur relative as defined under the income tax act than not to worry and prepare a gift deed.

Agreed with the views of  CA Devanshi gandhi. Being a relative under the income tax act, ur children won't attract tax liability. No limit is set for gift made to relatives. However a maximum of Rs. 50000 is exempt from tax in case the person is not a relative of the assessee. In ur case the limit is not applicable. Regarding the SIP, it will attract tax liability in the year it matures.

Income of minor child will not necessarily be added to ur income. It is clubbed with the parent having higher GTI at the time of accrual of income.

Thanks to All for your valuable guidance.

Best Wishes

Ganeshi Lal Agarwal

AGRY WITH CA DEVANSHI GANDHI

Thanks Mr. Radheykrishna for your reply.

Best Wishes

Gift to minor children is not taxable.

If you are investing in mutual funds, Shares (LTCG) or elsewhere, the income from which tax free then no question of clubbing or Tax on maturity.

There is no limit of the amount which you can gift to your childrens.

Just keep in mind that the income generated from the investments made be your minor childrens is tax free or are received by them, when they become major then no clubbing will be applicable.

Planning for childrens future is great, Best of Luck!

My neighbour wants to gift upto Rs 5 lakhs to the newborn grandson by taking a LIC policy on the newborn.

As per the rules there is no tax liability for the grandfather.

But is there any upper limit for the same ?

best Regards Anish