-
-
-
Services
-
-
-
More
-
POSTED BY ON August 23, 2013 9:20 pm COMMENTS (5)
May I invest (FDs) part of my income on the name of father (senior citizen and very low own income), since I am in highest tax bracket. This is to maximize post tax returns. How much such money can be invested? How to do this (Gift or any other way)? Is this legal? Are their any implications?
2021 © Jagoinvestor.com All Right Reserved
Dear Bharat, yes, that’s a valid solution but I want to know how much pain dear Amar is ready to take to save few Rs. from Tax. 🙂
thanks
Ashal
I got the point. To save some tax, more pains are ahead. Thanks all.
Dear Amar, Please gift the amount to your father under a gift deed. Once it’s in his bank account post gift, it’s his money & he can invest as per his choice.
There is one problem in this thing. Post gift this money becomes your father’s capital & hence once your father is no more, all your siblings including you w’d have equal rights on this gifted capital.
thanks
Ashal
@Ashal Jauhari the solution of the problem may be the ‘WILL’ by his father , stating the particular assets (formed out of such gifts) should pass to the particular son. of course , he should not state that he got the a/m as gift in the ‘will’ explicitly.
Is there a clause you are aware of that prohibits you from doing this? Here’s a nice article that covers just this aspect –
http://businesstoday.intoday.in/story/investing-through-children-parents-helps-save-tax/1/16581.html
I’ve been doing it to some extent w/o any repercussions. But my primary reason was grouse with the inept GOI! Give it some consideration – they take loads of road tax to give you terrible pot-holed infrastructure that’s all ways falling apart further. This has implication on the long term health due to driving in govt. caused horrendous driving conditions. Where’s the compensation for that? Improper infrastructure also increases your fuel consumption and causes various mechanical niggles and premature wear-and-tear that ends taking both our time and money! There’s no admission of guilt on the part of the govt. Furthermore, the govt. takes your money to buy votes by giving charity (think idlis…1 Re. rice…and much more to follow) instead of creating jobs for those people…The list could go on and on…but I hope you get the drift…..Save your money and invest/stash it away from the hands of the corrupt!
Sorry about the long rant! Your post re-kindled some purposeful thoughts.