Dev Chunky (15 Points)
26 January 2024Madam/Sir,
I am thinking about gifting my father (senior citizen) and sibling (sister) with some money i.e. about 50L total for their living expenses. They would most likely be investing in FDs (also some bonds maybe etc..). Whether their investment returns would be taxable for me or not?
Thanking you in advance for the reply.
Sharath chandra
(Accountant)
(1215 Points)
Replied 26 January 2024
No. Not taxable. for you. or for them .
Saravanan nagaraj
(463 Points)
Replied 26 January 2024
I hope you know that it was taxable when you earned it. When you transfer to your father and siblings. You will not be levied twice. You should report this to Income Tax while filling your ITR.
When your father or siblings who received money from you can avail tax exemption for their personal use. If they earn money from it as you said FD, Investment so on in their name. You will not be taxable. They have to pay tax for their earnings.
They should also report the money received from you and get exemption from tax. And earned incomes are taxable. Tax deduct by Banker or other institution.
Dev Chunky
(15 Points)
Replied 26 January 2024
How to report in my ITR? Which section in ITR to enter the amount of gift transfer?
Shirshendu Nandi
(IT Head in MNC)
(10 Points)
Replied 06 May 2024
Report it under Exempt Income section in ITR1 under Others subcategory.
Your parents need to disclose this in his /her ITR and in not yours ITR.
There are multiple opinions here some says you have to report some says no need but no one has the perfect answer .
To me Reporting and get peace of mind if best thing we can do
CAclubindia
