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Tax issues / filing returns for Gift received (Ten lakhs)

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Apparent Crux

3 Points Posted on 03 September 2022

I'm a housewife with PAN card and haven't filed returns till date, (as i dont qualify by any case)

My father's Fixed deposit is maturing shortly and he plans to park the maturing amount (Ten lakhs and a few hundreds) in my savings bank account for a year or so, before dispersing it to my siblings.

Will this act of parking funds in my bank account and dispersing the amount to my siblings attract income tax on me or qualify me to file income tax returns ?

Thanks in advance for replying in kind

Replies (9)

Quick Summary

A housewife with a PAN card, who hasn't filed tax returns before, received a gift of ₹10 lakhs from her father. She's concerned about whether parking this money in her savings account and later dispersing it to siblings will attract income tax or necessitate filing returns. Experts suggest that while the gift itself is generally exempt, creating a gift deed is advisable for clarity. Any interest earned on the amount while in her account could be taxable if it exceeds the exemption limit, and similar considerations apply when funds are transferred to siblings.

CA Aakarsh Jain

10436 Points Posted on 03 September 2022

No requirement of filing ITR.

CA Rashmi Gandhi

Chartered Accountant

86505 Points Posted on 03 September 2022

No filing required as amount is in nature of gift and It is completely exempted

veerendar singh

tax consultant

3306 Points Posted on 03 September 2022

Technically you are not mandated to file itr.
but i would nevertheless recommend you to file your itr

Mahesh Shah

2478 Points Posted on 03 September 2022

1) to be on the safer side....prepair a gift deed.
2) Int on 10 lakhs when trf to daughter, & if exceeds taxable limit income on int will be taxable ( subject to incometax rules for taxable income limit) to daughter.
3) when mother trf. to siblings. better to prepair gift deed again.
( gift deed to be prepared to prove it is not loan or advance) .
4) fd when trf to siblings. int accrued on such fd will be taxed in hands of siblings ( subject to Inc tax act on taxable inc limit)