Gifting of money

Tax planning 439 views 3 replies

Sreekumar

Manager - Finance

297 Points Posted on 11 January 2017

I am planning to give Rs.20 lakhs to my son who is a STUDENT and does not have any income by way of gift deed.

He will invest the amount in bank fixed deposit and earns less than 2.5 lakhs and submits Form 15G to bank for not deducting TDS in the interest income.

Please let me know if there is any tax liability either in his side or my side.

How to avail exemption and what is the limit.

Thanks in advance.

Replies (3)

saurabh kumar

Tax Consultant

348 Points Posted on 11 January 2017

If your Son is not minor,there is no tax liablility on either side ,The interest income up to 250000 will not be taxable in the hands of your Son(since there is no other income of your son) and it will also not be clubbed with your income.The money you have gifted to your Son will not be deemed to be the income of your son.Gift deed must be prepared for that.

Legistify

33 Points Posted on 11 January 2017

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