Income tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 August 2013 Mr.A had Rs.5 Lac's income from business(tax already paid),he want to use this amount as Fixed Deposit In the name's of his mother,father,Brother.Is family Members are liable to pay tax Or not. IF yes can you give me the clarification. Thank you in advance.. .

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

29 August 2013 1. The amount received by the relatives of Mr. A is NOT TAXABLE in their hands as per Section 56(2)(vii).

2. The interest earned from the FD will be taxable in the hands of the relatives.

Querist : Anonymous

Querist : Anonymous (Querist)

30 August 2013 Thank You Siddhartha Bhardwaj. . is there any differance if Mr.A Deposits amounts as F. D as Follows . . .
Mother- Rs.1 Crore
Father-Rs.2 Crores
Brother-2 Crores
Spouse-Rs.1 Crore

Upgrade to CAclubindia Pro. Subscribe Now!