Transferring online money to father

Tax queries 382 views 6 replies

Rohit

Student Others

66 Points Joined September 2015

I have transferred 20 lakh to father online .the money I had got through cheques as i had sold some property.

My query is , is legal to transfer money to father online

How the further proceed from father will be taxed if it is transferred online

Do we need to make gift deed mandatory to avoid clubbing of income in my income

Can we make deed in white paper and get it signed in the presence of witness or affidavit is mandatory for deed

Can we make deed after the transfer of money ,if so what is the time limit

Replies (6)

sabyasachi mukherjee

27936 Points Joined May 2017

It may be for medical expenses.

Its exempted from tax.

Rohit

Student Others

66 Points Joined September 2015

Sorry but you did not read the full query

Sargurunathan.G.R.

Finance Professional

171 Points Joined September 2011

Hi,

Pleae treat as loan given to your father, that will not be taxed.

You need to get the same from from your father and record the same.

If you are not going to get back the money from him, then prepare proper Gift deed in stamp paper for records.

Sargurunathan.G.R.

Finance Professional

171 Points Joined September 2011

Hi,

Pleae treat as loan given to your father, that will not be taxed.

You need to get the same from from your father and record the same.

If you are not going to get back the money from him, then prepare proper Gift deed in stamp paper for records.

Ranjan

970 Points Joined June 2023

@ Rohit

This 20 Lakh is a GIFT from Son to Father [ not cash ]and does not attract any tax as per Indian Direct Tax Laws.

But better to keep a simple Gift Letter mentioning clearly that:-

This [Amount] is a Gift from NAME [Son] to NAME [Father], date, place and your signature. You can just prepare it on a small value stamp paper [ 50/- or 100/- rupees]. This can be held by the receiver of the Gift [your father] for producing, if ever needed.

If the RECEIVER of this gift uses the funds for producing any income, that income belongs to him and taxable for him [Your father] alone. Except if the gift was to a Minor and the gift amount produces income [ ie FD interest for example] then that income becomes taxable for the parent [with higher income] , but not for the gifter, if gifter is not one of the parent.