Income Tax implication for money transferred to my father’s account

POSTED BY Nikhil Verma ON March 7, 2013 10:14 am COMMENTS (6)

Hi all,

If I have transferred more than 50,000 Rs to my father’s account on-line from my account who is a senior citizen, and then he does a Fixed Deposit of that amount. What will be the Income Tax implication for me. Doe it comes under Gift tax?

6 replies on this article “Income Tax implication for money transferred to my father’s account”

  1. Raghu says:

    Dear,

    My father passed away a few months ago at the age of 91 . My mother is staying with me and she is 86 years.
    My query is – there were a few fixed deposits my father account and now I want to transfer that amount in an account wherein me and my mother are joint account holders. Since my mother is not in a position to sign and operate the account, I would be putting it in a FD in my name (first holder).
    Could you please tell me if there would be a tax implication? I am a salaried person and filing tax.

    Regards,
    Raghu

    1. I dont think there is any implication of taxation just for getting that amount. Once you make the FD and earn interest, the taxation will be as per your tax salb

      Manish

  2. Dear Advait, please update yourself. The gifting is tax free. The income generated from the gifting is taxable if it’s taxable at all. The Income ‘ll be taxable in the name of the investor. Here I’m taking the case of children are also adults to receive & give gift.

    Thanks

    Ashal

  3. Advait says:

    To my knowledge any amount son/daughter transfer to mother/father is non-taxable. But if father/mother transfers/gifts any money to son/daughter will be taxable by son/daughter.

  4. Nikhil Verma says:

    Thanks Ashal.

    Regards,
    Nikhil

  5. Dear Nikhil, the gift tax has been abolished in Oct 1995 itself. Regarding the money gifted by you to your father, You can gift any amount subject to your income status. The income generated from the gifted amount ‘ll be taxable in your father’s name.

    Thanks

    Ashal

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