Tax on interest income of cash gift

My daughter, a student, aged 19 years, received gift of Rs 10 lakh from my mother (grandmother to granddaughter) and also Rs 5 lakh from me ( father to daughter). The total sum of 15 lakh is presently invested in her bank FD. What will be the tax implication on the interest earned. Wheather the clubbing of income provision be applicable in this case.

My daughter has no source of income .

 

Replies (3)
Quick Summary
This discussion explores the tax implications of a student receiving substantial cash gifts from her grandmother and father, which were then invested in Fixed Deposits. The core questions revolve around whether the interest earned on these FDs is taxable and if the 'clubbing of income' provisions apply. The consensus suggests that interest income is generally taxable, but clubbing may not be applicable as the recipient is an adult. The thread also touches on tax-free investments and a separate query regarding gifts to a non-taxpaying spouse.

May be no clubbing is required.
Interest Income on FDR will be taxable as income from other sources
However FDR from Grand Mother will be taxable as Grand Mother is not covered in the definition of relative.
Both deed of gift are not taxable asper sec 56(2)(vii)
no you can't clubbing as she is no more minor
income for interest is taxable but if you have done tax free fd you get extempt upto certain amount in 80c
On my retirement I got a sum Rs. 36lacs as tax free PF from company out of this I transferred a sum of Rs.14.50lacs ro my wife who is not a tax payer and she made FD for 1 year then after she converted it in to deposit for senior citizen scheme for a sum of Rs.15lacs for 5 years. Does it attracts any tax liability on her?

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 08 October 2026
ARTICLE TRAINEE

S.B.G. & CO. CHARTERED ACCOUNTANTS

New Delhi

CA Inter

View Details
Company
14 October 2026
GST & TDS ASSISTANT

AGGARWAL SANJAY & ASSOCIATES

New Delhi

B.Com

View Details
Company
07 October 2026
Senior Account Manager

Amplio Invest

Mumbai

M.Com

View Details
Company
12 October 2026
Chartered Accountant - Internal Audit

HKC | Chartered Accountants & Business Advisors

Ludhiana

CA

View Details
Company
13 October 2026
Accountant

Zerdi & Co. Chartered Accountants

Pune

B.Com

View Details
Company
ARTICLESHIP 07 October 2026
Article assistant

S.K.Bajpai & Co.

Noida

B.Com

View Details
Company
05 October 2026
Senior Accountant

Vision IT Peripherals Pvt Ltd

Mumbai

B.Com

View Details
Company
ARTICLESHIP 28 September 2026
Junior Accountant

J S P M & Associates LLP

Pune

B.Com

View Details