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Grandparents gift to grandchildren (minor)

Tax queries 816 views 4 replies

Hello,

For the AY 2017-18, my mother ended up in paying huge tax. Can she save paying taxes by paying some amount to my son as gift? If yes, then what is the procedure in:

1. Giving money to my son. Can she just hand it over to him or deposit in his minor account?

2. Filing tax for the AY 18-19 - Which section of ITR she can show this amount in order to save paying taxes

Can she invest on his behalf in mutual funds or policies? Will this investment would save her tax [probably not under 80C sections because she already investing 150000 per annum in ELSS]?

Please reply

Thanks,

Rohit

Replies (4)

clubbing provisions will attarcts here 

income from investment will add to income from where money has come 

Hi Sameer,

Can you elaborately explain my queries in terms of layman language because I am not expert in understading law language. please help.

Thanks,

Rohit

No It is not Possible. Gift cannot eligible for exemption. The tax saving tricks depends up on the type of income.

My mother get her income from FDs interest and dividends.


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