Income tax on a one off income for mom with no income

The gains of the 10 lakhs will be taxable as per slab rate in her account. After verifcation of the bank transactions and your earlier savings and capacity to give loan amount, the tax liability will be added back to you as deemed interest income.

Thank you Sir. Is there any provision for her to save tax as she has had no income whatsoever and has been also having hospital costs. 

Isn't it unfair that a person who never had any income is paying almost the same tax as, say, a fulltime working person with 10L income? I appreciate you may not comment on the fairness, but I meant to ask how can this tax be reduced legally.

I am an NRI myself and wouldn't like to charge interest on the lent amount if there's no tax saved between me and my mum when she returns back the principal amount.

1. Well, it is upto the discretion of assessing officer whether the interest be added to your account or not. But......

2. Your mother cannot get any benefit because she was non-earner for so many years. The tax liability over earnings are yearly based.

3. She can get benefit of 2.50/3.00 lakhs as basic exemption limit. She can save tax by investment u.s, 80C etc., medical insurance, savings bank interest income etc........

4. But general medical exenditures are not specifically reducible under IT act.......

5. Better consult some good tax expert, and see whatever maximum amount that can be saved as per available provisions of the act.

Thank you sir

Most Welcome.........