Tax on amount given to parents

ONLY YOU WILL LIABLE TO PAY TAX ON YOUR INCOME AND YOUR FATHER WILL NOT BE LIABLE TO PAY TAX U/S 50

My parents' income doesn't fall in taxable range. Is it possible to reduce my tax burden by by transfering some part of it to my parents?

For Businessman - Show parents employed in business and claim salary / remuneration etc.

For Salaried - the easiest way is to pay rent to your parent and claim HRA deduction from salary.

Income tax slabs 2011-2012 for General tax payers

Income tax slabs 2011-2012 for Women

Income tax slabs 2011-2012 for Senior citizen (Aged 60 years but less than 80 years)

Income tax slabs 2011-2012 for Very Senior citizen (Above 80 years)

Source: https://financeminister.in/Income-tax-slab-2011-2012

As per my understanding, income from gift to parents is not taxable for children. The concept of income clubbing does not valid in this case. The income clubbing is valid when parents gift the money to children and the income from gift is then taxable for parents.

Originally posted by : meabhijit
	As per my understanding, income from gift to parents is not taxable for children. The concept of income clubbing does not valid in this case. The income clubbing is valid when parents gift the money to children and the income from gift is then taxable for parents.

You mean, I can transfer my tax liability to my parents by giving them cash gift?

One can tranfer amount to his parents.  This will invite clubbing provisons.  However income from interest income earned would be taxable only in the hands of your parents.