Investment made on sister s name

POSTED BY VIGNESH BASKARAN ON May 17, 2012 8:06 am COMMENTS (3)

Hi

My sister turned 18. I am goi to get a pan card . But she is not having any income. she s doi her engineering.

Am i allowed to invest on her name(some 2000) per month ?

As there is no tax if we gift among the blood relatives.

Pls guide me

Regards
Vignesh

3 replies on this article “Investment made on sister s name”

  1. Sylvestor says:
    May 17, 2012 at 12:04 pm

    Does this gift transaction need to be detailed on a paper?

    Reply
    1. ashal jauhari says:
      May 18, 2012 at 12:22 am

      Dear Sylvestor, not only there should be a gift deed on a plain paper duly signed by both, the gift giver & receiver but the mode of transaction of money should also be either cheque or bank draft or net banking.

      The gift deed should have the info about donor, donee, the amount, instrument used to gift. The donee should sign with a sentence, I accept the gift.

      Thanks

      Ashal

      Reply
  2. ashal jauhari says:
    May 17, 2012 at 8:14 am

    Dear Vignesh, Instead of transferring money to her bank account every month, gift her a lump sum amount say 50K & then invest from that amount. Once gifted to her, it’s her money & accordingly the taxation ‘ll be under her name if at all the income becomes taxable.

    Thanks

    Ashal

    Reply

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