Income tax on Fixed Deposit done by me on name of my mother

POSTED BY tanmayb ON February 16, 2014 4:48 pm COMMENTS (3)

If I make a Bank Fixed Deposit in the name of my mother who is a home maker and has no income which I will declare using form 15G.

Then at the time of maturity of the Fixed Deposit is there any possibility that IT department may ask from my mother that from where she got this money to invest in Fixed Deposit and cause any other issues/hurdles to her or me either.

Thanks and Regards

Tanmay Bhardwaj

3 replies on this article “Income tax on Fixed Deposit done by me on name of my mother”

  1. ashalanshu says:

    Dear Tanmay, it’s a very simple deed and you need not to prepare it on any stamp paper. On a plain white A4 size paper, declare like this –

    I, Tanmay Bhardwaj, s/o Mr. ___________, aged ____ years, having residential address __________________________________________, is gifting an amount of 5000000 Rs. (in words Five Lakhs Rs.) through a bank cheque no. ______ dated _______ of bank __________ to My mother named Mrs. ___________, wife of Mr._____________, aged ______ years, having residential address _________________________________, out of my natural love and affection. From today onwards, I will not have any claim on the gifted amount and My mother, Mrs. _____________ is free to use this amount as per her own free will. Declared this today _____ day of Feb 2014.

    I received the Gift.
    Sign of Donor (Tanmay) Signature of Donee (Your mother)

    Thanks

    Ashal

  2. ashalanshu says:

    Dear Tanmay, to avoid any query on a later date, please prepare a gift deed for your mother that you have gifted X amount. Please do note, once you gift it to your mother it’s her capital and she may use it as per her own choice. If she like to give this amount to any of your sibling, you can not stop her.

    Thanks

    Ashal

    1. tanmayb says:

      Thanks Ashal,

      From where can I get a legally correct deed format.
      I searched the internet but could not find a satisfactory format.

      Regards
      Tanmay

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