Income tax on gifted money

Tax queries 467 views 2 replies

Debashis Mandal

Others

32 Points Posted on 14 January 2014

Hi All,

My father is an retired person (68 yrs of age) and currently annual income is only from pension (2.7L pa). Now if I send money to my father (in his bank a/c through an online transfer) will it be considered as an income for him? If yes then in which category he has to show it in tax filing?

Secondly, if he puts that money as fixed deposit in Bank and gets some interest up on maturity, then does he have to show it as his income while filing tax return? Will it be considered my income as I have sent the money to him?

Thirdly, up on maturity if he sends back me the money (principal + interest amount) then in which category I have to show it in my tax filing?

I am eagerly waiting for the reply and Thanks in advance!

Regards,

Debashis

Replies (2)

Mihir

Wealth Manager

5293 Points Posted on 14 January 2014

1) No, the money sent by you to your father is not taxable in his hands.

2) Money invested by him in FD and interest earned thereon, shall be taxable under the head income from other sources.

3) Money sent by him back to you is also not taxable in your hands.

If the aforesaid gift amount is substantial, then preparing a gift deed will be a good defence in case the AO raises any question of its sources.

Vijay kishnani

proprieror

26 Points Posted on 14 January 2014

My. Query is ..... scruitiny case out of creditors amounting Rs 1.2crore confirmtion of Rs 90 lac is avlble what are the consequence and what shall be done in this situation