my income is 5 lacs per annum. I have PPF deduction of 1.5 lacs. so I have only 1lac taxable income.
can I gift this 1lac to my unmarried (Not Minor) daughter to avoid tax?
1. if yes, Do I need to actually transfer the amount to her bank account or only the gift deed will be fine?? And what should I mention in the gift deed?
2. If No, then in which way I can gift money to avoid tax?
18 January 2016
Mr. subhransu u have earned Rs. 5 Lac and 1 lac is taxable, if you gift Rs. 1 lac to your daughter it will not reduce your tax. it will reduce only your capital. ofcourse u can reduce the interest income by gifting rs. 100000/- to your daughter in next year. which will be taxable in hands your daughter.
You can consider other deduction like 80D, 80G, 80GG etc.
18 January 2016
I guess I understood you. But I am not getting that how come in next year I can reduce interest on tax by gifting but not this year. Can you give an example so that it will be easy I guess.
CAclubindia
