1. Can a husband give a lump sum to wife, who inturn open a fixed deposit account and get interest income to meet personal expenses. Is there any cap on such lump sum amount in a year.
2.Can a father, give a lump sum to minor daughter or Son (studying) for their monthly expenses, who inturn deposit in a Bank and received interest to meet the expenses. If so, is there any cap on such amount.
No! there is no cap on Gift receivd from Relatives as Husband and Father both fall under the definition of relative.
However, Interest earned in second shall be clubbed with the income of Father/ mother as the case may be.
In first case said interest may be clubed with the income of Husband.
Good evening Shri Mohit Pathak
Thank you for the response.
Sir, one clarification Please
If the money given to wife becomes her property and the income from such money goes to her only. Eventually, the assessment to be in her name and if she is in the tax bracket then the tax has to be paid by her only. Will this not be hold good?
Chirag N Shah & Associates
Mumbai
CA Inter
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