Income tax chargability

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This query is : Resolved

abhirath (Querist)

04 September 2016 Sir suppose Mr X sells his land for Rs 50 lakhs . He will pay all the capital gains tax on the sale proceeds and remits the balance amount to his son's account. Now, is the son liable to pay tax on what he recieved as balance amount or is it tax free ?

Unnikrishnan B

Unnikrishnan B (Expert)

04 September 2016 In this case the amount invested into the bank account is tax free. But if the son is minor and the interest income received from the investment I'd taxable in hands of parent whose income is more other than the investment income of the minor child
Rs 1500/- is deductible per child
Hope it is clear

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abhirath

abhirath (Querist)

04 September 2016 Sir what if the amount is not invested , but gifted to the son ? Is it taxable ?

Unnikrishnan B

Unnikrishnan B (Expert)

04 September 2016 Gift to relatives not taxable.so not taxable

Unnikrishnan B

Unnikrishnan B (Expert)

04 September 2016 The problem is if it is a minor child.it would be difficult to explain to income tax authority.
Kindly discuss with a professional in your area

abhirath

abhirath (Querist)

04 September 2016 Thank u very much sir .

abhirath

abhirath (Querist)

04 September 2016 Thank u sir.

abhirath

abhirath (Querist)

04 September 2016 Thank u sir .

Unnikrishnan B

Unnikrishnan B (Expert)

04 September 2016 You are most welcome