Mother Income Tax Return

 Gift may be disclosed under Schedule EI, as exempt income.

Taxable income will be only interest received.

But is it mandatory to disclose the gift in itr....as I have not given the gift deed.

Otherwise chanses of query for the source of fund.

If query come and source of fund is explainable (as I have transferred this money to my mother account from my bank account out of my taxpaid money )....then there should not be any issue ......right ?

Also, is gift deed necessary in this case? As I don't have any.

Also, the 1.5 lacs FD interest that mother had made....I have already clubbed that income in my ITR to pay tax on it...it's income generated on gift amount

1. Explanation can be given... As 30L FD made, SFT reporting by bank is mandatory.
2. Gift deed is not mandatory in your case.
3.  Clubbing provision does not apply. The interest is taxable in mother's account. Check TDS cerificate.

I have clubbed the Fixed deposit 1.5 lacs interest amount in my ITR and paid tax on it.

What should I do now ?

If you wish tou can revise it. But declaring the interest income in mother's PAN is mandatory.

I have declared 1.5 lacs mother FD income in my ITR (under income from other source) and paid tax on it.

At the same time, I have also declared 1.5 lacs FD income in my mother ITR as well to get the tds refund that bank has deducted on this interest.

Please let me know if above is okay.

If you have already shown that interest amount in your Mother's ITR then why did you clubb it in your income ?? Better to revise your return ...... & remove that interest amount. 

Because my CA told me that mother has made FD of the amount that I transferred to her.....and interest earned on it can be considered as tax planning i.e. I have transferred money in my mother account to save tax on FD interest that I would have paid if I hadn't transferred it.

So, just to be on safer side I have clubbed FD interest in my income as well.

Also, I have shown this income in mother ITR because bank has deducted the TDS on FD interest which can only be claimed in her account (as her total income for FY 2023-24 is just 1.5 lac I.e. income from FD)

Please let me know your thought.

Dear Vicky, Either Income or exemptions you can show/claim at once only. 

@ Dhirajlal ji,

Please let me know your thought on the same.

When rules are  disscused the stand remains the same, that the income should  be declared by your mother as per AIS/26 AS reports.

Here, when you have already declared it in her PAN, there would be no query raised by department even in your PAN, as you have declared more income than the AIS data.

Whether you wish to revise the return or leave it as it is, depends upon you. Department won't have any objection in either way. If you do not revise it, it is not illegal.