Transferring Amount of 9 lakh to sister account.

As per my knowledge

You want to transfer such loan amount in sister's a/c for FD purpose and after six months you'll get it back

Sec 61 Income tax act this transaction consider as revocable transfer of asset and generated income will clubbed in the income of transferor. So interest not considered as your sister's income.

Form 15G help not to deduct TDS from interest income but income is liable for tax.

There's not any restrictions regarding transfer of amount in any mode other than cash.

Sir, thank u fr answering..
Plz guide one more step, as what will be d case, if i do not take the amount back. and will invest it into the world from sister account itself.
My worry is, it may not impose any inquire into her account for such a big amount deposit at a single time.

it is gift exempt from tax brother to sister

if any fd account for rs. 200000 or excess opened, definitely department will ask for sources for the same

Sir, as d source f income is d loan in dis case. i think shall it will be a problem. better ur advice needed??

reporting requirement more than 10 lacs

sir, i didn't get d phrase "reporting". i think it is visible to anyone frm IT dat frm where dis amount came?

even if the sources explained, clubbing provisions will apply

clubbing is for income from investment and not on capital tfd.
I have gifted yo my sister as well as taken some gifts from another sister. non returnable and no consideration involved.
if u keep it as fd and total fd ex eeds 10 lacs bank will report to incone tax as high value.
letter from brother to sister will suffice.

thank u so much to all fr such a legal guidance. it''ll help me to move safely. :)

clubbing provisions applies to moveable and immovable properties transferred either by way of revocable or irrevocable transfers. subject to conditions... sections 60 to 65 applicable..

Dear Dharmendra Joshi,

You need to consider the following factors regarding your case :

1. If you transfer your loan Amount to your sister and she received Interest on that then that interest would not be taxable in her hand but it will still be taxable in your hands as per Section 61. This is called Clubbing of Income.

2. If your sister make an Fd out of the invested amount then you must consider this thing that If The total amount of ALL FIXED DEPOSITS MADE DURING A PREVIOUS YEAR INCLUDING REINVESTED THE MATURITY AMOUNT exceeds Rs. 10,00,000/- then Banks would automatically send your sister's account information to IT DEPTT. This is called reporting requirements (which needs to be followed by Banks not by you or your sister)

3. The 15G can't be helpful here because 15G can be used only the Assessee himself has income which in below taxable limit. But in your sister's case the income of interest would be clubbed in your hand so it will not be considered as her income. So 15G can't be helpful here.

As per my opinion you should invest the amount somewhere for a short period of time so that you can have a trade off between amount of interest earned vs. amount of interest and tax paid.

Hope this will answer your query properly.

Be helpful to one another.

Thanks.