Opening RD or MOD in the name of mother and depositing money by me,

POSTED BY Ashok Kumar ON April 5, 2013 5:32 pm COMMENTS (6)

I have a query.

If I deposit money in my mother’s account (Recurring Deposit) who is house wife, then amount(interest) after maturing  would be taxable on my income(my salary slab) under clubbing income rule or will it be tax free as my mother does not have any income  source?

 

In another case, let’s say my mother has MOD scheme of SBI and I deposit money in it then will the interest earned would be applicable for TDS on my income(my salary slab) under clubbing income rule or will it be tax free as my mother does not have any income  source( By submitting 15G form in the bank)?

 

 

Thanking you.

6 replies on this article “Opening RD or MOD in the name of mother and depositing money by me,”

  1. Ashal Jauhari says:
    April 8, 2013 at 6:24 pm

    Dear Ashok, simple on a plain paper declare that you are gifting X amount to your monther through cheque or netbaking & from today onwards, it’s her capital & she is free to use it as per her own free will. Both of you should sign it. Your mother should also sign it with a sentence – I accept the gift.

    That’s it.

    Thanks

    Ashal

    Reply
  2. Ashal Jauhari says:
    April 8, 2013 at 12:16 am

    Dear Ashok, yes both are different. In case you are using your mother’s name to earn higher income for you, the income ‘ll become taxable in your name.

    If you are gifting your money to mother & she is investing/using as per her own free WILL & not returning you anything, in this case, it’s her capital & any tax liability ‘ll be only under her name.

    Sprite?

    Clear hai? 🙂

    Thanks

    Ashal

    Reply
    1. Ashok Kumar says:
      April 8, 2013 at 11:23 am

      Ek dum clear hain.))

      Thanks

      Reply
    2. Ashok Kumar says:
      April 8, 2013 at 5:07 pm

      I have one more query.

      How I can gift money to my mother?

      What is the legal procedure?

      Reply
  3. Ashal Jauhari says:
    April 5, 2013 at 5:58 pm

    Dear Ashok, are you asking for investing your money under your mother’s name or you are gifting to your mother & she ‘ll use it as per her own choice to invest or spend?

    Think & answer.

    Thanks

    Ashal

    Reply
    1. Ashok Kumar says:
      April 5, 2013 at 7:59 pm

      Thanks for your quick reply.

      If I want to invest my money under my mother’s name or if I gift her money,

      are these two different cases?

      Kindly explain if they are different.

      Reply

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