I am not sure if you can do it now .. check on our forum on this : http://www.jagoinvestor.com/forum

Thanks 4 ur immediate response. I am showing this as loan & will repay this in 2 yrs.

Is just writing it on a plain piece of paper and with my parents signature enough ?

Incase your parents gift the money to you , then the income generated will be yours only .. You can aslo show it as loan and then trasfer the money back to them later , but you will have to do some documention on this

Manish

I have been reading your blog from quite some time now…You are doing a really great job.

Need to know about Income tax stuff:

My parents have transfered Rs.7 Lacs to my account & I have been investing their money along with mine in the derivatives market & earning a decent profit of 4-5% every month.

What is the income-tax implication on the money given from my parents account into my account & the income generated through that money. Should i show it as a gift or as a loan from my parents.

I will repay them the entire money with say 20% interest within 2 yrs from now.

Awaiting for your feedback,

Thanks & Regards,

Uday

What we put in wife’s name is POST TAX, that is tax has already been paid for the income and the remaining becomes our savings.

Tax department treating what is already taxed and then given to loved ones as a “Evasion” is – just another unfair means for extraction.

Several countries allow joint filing of incomes by husband-wife couples. It is not the case in India. Shame that one has “loan” to a spouse. The closest equivalent for joint filing is Hindu Undivided Family.

The Family is already breaking up in India, and of course we have a tax system that only favours such break up.

The tax system has another form of corruption – Advance Tax. Tax which is for the financial year is collected in advance even before the year completes – while refunds are not given upto several years.

For a government ridden with scams, there is a Tax system that sure favours even more to come.

Yes , you can gift handsomly

http://www.tax4india.com/gift-tax-india/gifts-n-clubbing-india.html

You have suggested gifting money to would-be-wife. However I guess receiving such money in aggregate of over Rs.50,000 per year (it used to be Rs.25,000 per gift from 1 Sep 2004 to 31 Mar 2006) is taxable as income from other sources. [http://law.incometaxindia.gov.in/DitTaxmann/IncomeTaxActs/2009ITAct/section56.htm]

Or can one say he is gifting it on the occasion of the marriage of the person he himself is marrying?