Gift Tax and Delayed Tax filing

This query is : Resolved

Mohsin (Querist)
Follow

12 June 2008 I have 2 queries
1. If the income tax has not been filed for the year 2006-2007( due in July 2007) till now, and there is no tax pending to be paid- would it attract a penalty now to file it?

2.If a son gives a sum of Rs 2,50,000 to his father- who puts in a FD for 2 years and then returns the amount with interest to the son, would either need to pay income tax( father has no source of income so interest on FD would not be taxable as he is senior citizen)

Thanks in advance

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

05 April 2012 1. If the return is filed before the end of the assessment year then penalty shall NOT be levied.

2. No tax liability arises in the hands of the father.

However, interest received by the son is taxable as income from other sources.