My Mother is a non-working,senior citizen who manages house.My father passed away last year and left almost 10 lakhs in various accounts and FDs that we already cashed out and put down in my Mother’s account.
I want to make an Fixed deposite for my mother so that She can recieve monthly/quartly interest income that can be invested furthermore because my mother mostly don’t need any money as we take care of all household needs.
Now my question is :
1)Will 10 lakhs inherited by my mother be considered as income for her this year ? And she owe tax for this according to slab?
2)What if I add my 10 lakhs and make it 20 lakhs for FD ? Any tax implication for my mother ?Any limit for gift ?
3)How much money can she invest in FDs so that It doesn’t create tax implications.I don’t want to take overhead of filing her income tax.I heard there is no need to file income tax under certain conditions ?
4)What is the procedure so that there will not be TDS,I simply want to avoid paying TDS and then claiming next year.
5)Does Principle and Interest,both accounts for tax calculation ? Suppose the above 20 lakhs are fixed in 2012 and she earns 2 lakhs interest in 2013 so what amount will be taxable ? Taxable 20 lakhs in 2012 and Tax on 2 lakhs next year ?
As you see,I am very confuse and want to avoid filing/tax on my mother’s Money.Yes,that is true.I want to keep it simple and regular source of income for her so that she can manage her money by herlself without paying/filing any tax.
Thanks for reading and Please suggest the best way of it.
Sam