I intend to gift a monetary sum to my son/daughter-in-law as a part of inheritance. I understand that gifts of any quantum between close relatives are non-taxable for the recipient however would their overall tax liability on the subsequent interest earned on this corpus (or subsequent investments) be lower if I gift it directly to my daughter-in-law (employed however fits currently in non-taxable slab) vis a vis my son (30% tax bracket). Or is it all the same, regardless of who receives the money, from a taxation perspective due to clubbing of income or any other provisions applicable on the income generated henceforth, given the relationship. Secondly, what documentation is needed for the eventual recipient to ward off any unnecessary scrutiny from IT Dept.
Menu
Taxation on Gift to son or daughter in law
Further, Considering I have already given partial corpus to my son, can he transfer it to his wife to invest further, rather than investing himself, to reduce the overall taxability for the family
If wife is a housewife then all her income will be clubbed with her husband.
U/s 64, income from asset/property transferred by spouse to his/her counter part without consideration is taxable in the hands of transferor.
Jain sir is 100 % correct. What ever u transfer / gift any thing in Property or cash or shares or any asset - if its value is more than 50000 Rs it is taxable . the person who gets has to pay . IT is treated as income for that person.
Pl chk. Think applies even father to son
Recent Topic
- Free GST invoice tool I built for my practice R
- Clarification on Gratuity Exemption under Section
- GOODS AND SERVICE TAX - GSTR 1
- Correct ITR form
- Clarification required on Section 393 & Report
- Professional advance taxes
- Surrender pan process
- Tds on deceased's pan
- Exempt income declaration schedule EI in ITR2 (AY2
- Mold cost invoice in GST return
Related Topics
CAclubindia
