Tax related issue

Hi Anupam,

Any sum received from a relative as gift is exempt from taxation [Sec.56(2)], and hence there's no tax implication on the transaction of gift itself.

However, please note that the income arising from the FD created out of such gift i.e. the interest on FD, shall be taxable as income from other source subject to clubbing provisions, whereby such income shall be clubbed in the hands of the wife. [Sec. 64]

Hope this was of help.
Bharat Manihar

Thanks for your quick respose.

what if the person on who's name the FD's are open are already a tax payer