Gift to mother and tax exemption.

Dear Friend

You can give any amount of Gift to your mother. 

However the amount of Gift will not reduce your income of any year.  It will be deducted from your capital account as capital withdrawal.  There will be no Deduction in your current year tax liability.

Gift received by your mother will not be taxable in the hands of your mohter as well.

You can give a gift to your mother by Chq. with Gift Deed on stamp paper  for proper documentation for the matter.

No deduction would be allowed from your income of the amount sought to be gifted to your mother, as it has nothing to do with the earning of your income. Only such expenditure which are incidental or wholly and exclusively laid out for earning the income shall alone be deducted. As regards the treatment of gift receipt in the hands of your mother, it is exempt as your mother is falling within the ambit of relative as defined in explanation to section 56(2)