4 replies on this article “Opening Fixed Deposit”

1. ashal jauhari says:

   November 4, 2011 at 5:34 pm

   Dear Kalyan, Please do note in case you are gifting to your wife, the interest earned from the bank FDs ‘ll be taxable in your hand under the clubbing provisions of section 64.

   So please do not gift money to your wife.

   Thanks

   Ashal

   Reply
2. kalyan says:

   November 3, 2011 at 6:12 pm

   Hi Ashal,

   Can the same thing be done if the amount receiver is wife instead of mother..?
   Thank you.

   Reply
3. ashal jauhari says:

   November 3, 2011 at 2:03 pm

   Dear Jayakrishna K, First of all please prepare a gift deed on a plain paper mentioning the amount gifted to your mother from you. Also mention the cheque/netbanking details. Get it signed by both of you.

   Once the amount is in mother’s account, it’s her own money now & any tax liability on the income from this gifted amount ‘ll be on her only.

   Instead of e – TDR or e – STDR , I w’d ask you to open a regular bank FD if your mother is 60 or more years old, to be eligible for extra interest meant for Sr. Citizen. In case the annual interest from such FDs is going to be more than 10K Rs. please file form – 15G (if mother is not a Sr. Citizen) & 15H (if she is a Sr. citizen) along with the copy of her PAN Card.

   Thanks

   Ashal

   Reply
4. Abhishek says:

   November 2, 2011 at 2:20 pm

   Hi

   Any money in a form of a gift to your Mother is tax free in her hands. You can do the above legally. You dont need to show the interest amount in your IT Returns as it will be added to your mothers income and will be taxed accordingly as per her tax bracket.

   Regards
   Abhishek

   Reply

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