Gift tax and income clubbing provisions?

If my father transfers a sum of Rs. 10lakh in my account (not a minor account/above 18yrs).

I have read somewhere that this is tax free under the gift tax act (gift to direct relatives is tax free).

Do I have to sign a gift deed with my father for such transfer?

Now if I earn interest on it at say 10% (ie 1 lakh).

Would it be considered my income or my father's (under the tax clubbing provision)?

Also, do I have to declare the amount that my father transferred(Rs. 10lakh) in my IT return? If yes, under which column.

Replies (3)

In your case, this gift shall be tax-free. Since it is a large amount, preparing a gift deed will be a good idea. You will have to sign the gift deed acknowledging the receipt of the gift.

I think clubbing provision will not apply.

Wait for more replies.

clubbing provisions will not apply....

 

IN IT RETURN, IT WILL BE SHOWN IN OTHER SOURCES... EXEMPT INCOME..

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