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How to reduce tax liability by gifting to family members

Tax queries 1489 views 2 replies

josh

256 Points Joined January 2008

Hello,

how to reduce the tax liability by gifting to family members/parents ?
what is the procedure to avail tax benefit by gifting ? what is the limit for gifting ?
If money is received by my parents as gift , what will be the tax liability to them ?
I plan to gift to my mother (who is housewife), she is having saving account as primary account holder and
me as second account holder in the bank , will this come as bottleneck while gifting to my mother ?

thanks

josh

Replies (2)

M.Sriram Shenoy

CA Final

814 Points Joined January 2008

Gift given to relatives is exempt.If it is received from a non relative, then it is taxable subject to a maximum of Rs.50,000.00.If you receive gift from a third person individually or cumulatively exceeding Rs.50,000.00, then the whole amount is taxable EXCEPT situations like On the occassion of marriage, property received under a will or trust. And as far as the donor is concerned, he cannot claim any gift given to any one.You can very well gift your mother, as it will not be taxable.But at the same time, you cannot claim deduction in respect of that.