Tax Implications on Rs 10 lac gift to my mother which she is keep as FD ?

POSTED BY gopal r naini ON March 25, 2014 1:22 pm COMMENTS (7)

If I gift Rs.10 lakhs to my mother  which she keeps in Bank FD and earns interest for her expenses ,then what are the Tax implications?

Gopal R Naini

7 replies on this article “Tax Implications on Rs 10 lac gift to my mother which she is keep as FD ?”

  1. ashalanshu says:

    Dear Curiousraj, I w’d wait for your update. Alternatively, you may directly write a personal mail to me after your research.

    Thanks

    Ashal

  2. curiousraj says:

    Thanks Ashal for your reply. I will check section 64 of IT act as suggested by you.

  3. ashalanshu says:

    Dear Curiousraj, instead of directly answering your query, I w’d ask you to read section 64 of Income Tax Act. Please post your leanring here.

    Thanks

    Ashal

  4. curiousraj says:

    Hi Ashal,
    Please let me know, is gift deed needed for any money transfer I do to my wife’s account. She is a home maker. I have plan to transfer around 10-20 K every month to her bank account and then invest in her name in FD, RD and Mutual Funds for tax saving on the earning on this investments.

  5. ashalanshu says:

    Dear Gopal, please prepare the gift deed if not prepare already.

    Thanks

    Ashal

  6. gopal r naini says:

    Thanks for the info.I was under the impression that the interest income has to be clubbed with mine.
    Gopal r naini

  7. curiousraj says:

    the 10 lac will not be taxable at all. but the interest earned on this amount will be added to her income. and then taxed as per the tax slab.
    if she does not have any income then at 10% total interest in first year will be 1 lac only so not taxable. as you know interest is compounded every year so you need to take care in future when it becomes taxable as per the future tax slab in govt budgets.

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