Seek answers to my queries, pl help...

Hi,

My father received Rs. 80 lacs as beneficiary of life insurance policy of my brother last month. My queries are as under.

1. Can he gift 20 lacs to each one of us i.e. my mother, my wife and myself?

2. If yes, can each one of us invest this money in bank tds and the interest earned be treated our individual income?

3. My daughter will be 18 yrs on 15th Sep, 09, in which financial year her interest income will start being assessed in her own hands?

I would be highly thankful to the community here for the help in answering my queries.

Regards to you.

Kumar

Replies (4)

Sir,

Your father can gift any some of money to you or any member of your family its is fully exempt.

But, the inerest income from the Bank in the case you, your wife and mother will be clubbed in the hands of your father only. Further, any income earned by you, your wife or mother from the investment of inetrest income earned will be taxable under each individual hand.

Under Income tax act, the age of the assessee will be taken as on 1st April of the relevant previous year hence; in your daughter case relevant previous year will be 2010-2011 and the assessment year will be 2011-2012.

Bye

Take care

hi, i agree with rich for all the provisions except the age of your daughter........ i am of the opinion that the act prescribes........... the assessee should have attained the age of 18 at any time during the relevant previous year. hence under these provisions, your daughter can be independantly assessed to income tax in the previous year 2009-10, i.e assessment year 2010-11, as your daughter have attained the age of 18 on 15/9/09 which comes under 2009-10 previous year.

 

bye..

Thanks Richa and Parthasarathy for your suggestions.

But, I feel that once my father gives the money as gift to us, this should be treated as our capital and income made on the same should be assessed in our hands not that of my father. Because he has not paid the money from his income but from his capital.

Please help providing me your comments on this issue

Also, please let me know, is it possible for me to gift a portion of the amount received as gift from my father?

Regards.

Kumar

hi

gift of any amount received from relative is exempt u/s 56 of the Income tax Act,

Your income will be clubbed in the hands of your father by virtue of Sec 64 of the I. T. Act.

You can go through the same

Do let me know if you have any further query in this regard

So far the age of your daughter is concerned i will let u know only after conforming it.

Bye

Take care

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