Sir, I want to transfer 10L white money which I saved out of my salary over the past 6 years. I want to transfer money because income from salary and interest on FD when clubbed together resulting in huge tax payment. I want to transfer 10L to my brother so that he can open an FD on his name. My brother is unemployed. Will there be any tax on the Rs.10L if I transfer Money in my brother's account? He is my own brother..
Today I spoke to Bank Manger and he says, " It seems that to avoid TDS on income from other sources, you want to invest the amount in your brother's account so that he can invest in FD which is indirectly benefiting you by avoiding Tax. As per IT rules, the only exception is your Parents, but not others including your spouse and children"- Hence the best option is to transfer the amount to your parent account." Can you please suggest me how to proceed further in the matter
By the by, I have no intention to take money(both 10L and Interest out of FD) given to my brother. My brother will have quarterly interest on FD and he will use that money for his personal purposes. Please advise. Regards, Krishna
CAclubindia
