Tax implication

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 May 2014 a father retired from govt department and get commuted pension net of TDS, now son of the person wants to invest that money in his transport business , what is the procedure and what will the tax implication for the son.? as well as for the father

Rupesh Jain

Rupesh Jain (Expert)
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15 May 2014 father can make gift to son.
or given loan to son for business.
in both case gift deed and loan agreement to make for future.

and in loan case sons can give intt to his father as per current bank intt. rate.

gift will exempt for son.

Querist : Anonymous

Querist : Anonymous (Querist)

15 May 2014 thanks sir ,
Sir please make me clear that if gift is exempt in the hand of son then is the income generated from transport business of son is taxable in fathers hand or in sons hand

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Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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15 May 2014 if transport business is on the name of father(owner) then taxable income will add to father income or if its on son's name (owner) then taxability will on son head.