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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 February 2016 MR X GIFTED OF RS 15 LAKHS TO MRS Y AND SAME ABOUT DEPOSITED AS MIS IN BANK.
MY QUESTION :-
IS IT TAXABLE INTT ON MIS (MONTHLY SAVING SCHEME) IN THE HAND OF MR X OR MRS Y ?
IF IT IS TAXABLE IN THE HAND OF MR X, THEN WHICH SECTION IT TAXABLE ?

IS GIFT DEED NECESSARY OR COMPULSORY IN THIS MATTER?

IF NOT THEN WHICH SECTION IT WILL GET RELIEF?

THANK YOU.

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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25 February 2016 Whose account the MIS is vested (if it is in the name of donee than taxable in donee's hand if Taxable income exceed Minimum slab) they have to bear Tax liability on interest income. Interest on SB Taxable if it exceeds Rs.10000/- upto Rs.10000 is exempt u/s 8TTA, Balance taxable Under the Head Income from other sources.

Gift deed is necessary for donee to justify source for Investment in MIS during scrutiny.