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Income received from son

12 May 2017

a business retire father received rs. 10,000/- every month in his bank account from his 2 son every month towards family expenses and he is only having savings bank intt income.

Which ITR he must use to file return and what will be source of income to be declared in form.

Please guide

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8 Replies

manoj (student) (5205 Points)
Replied 12 May 2017

first of all his total income seems to be below basic limit so no need to file ITR

even though if he want to file his ITR then ITR-1 Income from other sources

1 Like

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 12 May 2017

" a business retire father received rs. 10,000/- every month in his bank account from his 2 son every month towards family expenses.."

The amount received is not earnings for retired father, and already taxed in the hands of sons.

So, father may not file return if other than this capital receipts are below basic exemption limit.

If ITR filed otherwise; this receipt can be declared under 'exempted income'

1 Like

Amit Gahlawat (118 Points)
Replied 12 May 2017

It's already taxed in the hand of his sons.
20000*12 =240000
It's below e exemption limit.

1 Like

manoj (student) (5205 Points)
Replied 12 May 2017

if he shows exempted income there are chances of departmental querry

1 Like

CA Dhiraj Ramchandani (CA, M. com) (10823 Points)
Replied 12 May 2017

Gifts concept friends, father can always show it as "Gifts". Nothing is unofficial in that, gifts from sons are not just exempted, but also legal way to declare your income. Sons are already declaring it as their income, so the amount cannot be charged again as income in hands of father. And for ITR, it can be declared under IOS, so ITR-1 would be sufficient.

1 Like

S.K.Jha (student) (265 Points)
Replied 12 May 2017

No need to file return of Income by retired father because you stated that his income is only SAVING BANK INTEREST.

Reason:-

1. His Income is not more than 2,50,000/3,00,000/5,00,000 as the case may be.

2. Exemption limit of RS. 3,00,000 is applicable to those whose age is 60 yrs. or more but less than 80yrs. ( SENIOR CITIZEN)

3.Exemption limit of Rs. 5,00,000 apllicable to those who is 80 yrs or more. (SUPER SENIOR CITIZEN)

Income in your case is less than Rs. 2,50,000. Hence you are not required to file return of income.

2 Like

Umesh Chandra Prasad (Others) (135 Points)
Replied 12 May 2017

The amount received from son may be declared as gift which will be totally exempt under income tax.

ALOK GOEL (chief manager) (593 Points)
Replied 15 May 2017

The issue is that 10000 received by Father from his son.

CASE-1

If son has just transfered without any deed or paper that it is income to father and need declaration but being 120000 total , no need to file return

Case-2

If any deed /Paper as gift to father , then non taxable.

Suggestions

Son being close relative as per IT act , and full expeted for any tax in the hand of receiver ( father) , it is advised to offer such amounts as gift only with some deed./ Paper etc.