Money to parents

If you take the principal then it is also not taxable in your hands as it  will be treated as gift in ur hands.

u can take fd on your parents name. No Issue

and as sarthak said it will be treated as gift which is not taxable

For this purpose,  first issue the cheque on your parents name get it cleared in your parents a/c and then do fd on their name.

please do not forget to submit form 15H to save tds, otherwise bank will deduct Tds @ 10%

Originally posted by : ANUP GUPTA
	u can take fd on your parents name. No Issue and as sarthak said it will be treated as gift which is not taxable For this purpose,  first issue the cheque on your parents name get it cleared in your parents a/c and then do fd on their name. please do not forget to submit form 15H to save tds, otherwise bank will deduct Tds @ 10%

thanks to both for answering my query, but as written earlier I may like to take principal amount back after 2-3yrs, then how it can be gift?

I just simply want to invest some of my saving on thier name to get good return which they can utilize for monthly expense, so little worried that when I will take that principal amount back then IT dept can question me..

See when u make a fd in name of your parents then it a gift from your side and after its maturity the amount then will be credited in your parents name and then your parents can gift this amount to u .