Tax plan

This query is : Resolved

jinesh (Querist)
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20 September 2012 Dear Sir,

i am retired person. i have recd Amount from My Retirement. i have thought like this:

i have pension plus what i got that invested in bank as Fixed Deposit.

So I got yearly Interest say 2 lacs. i have two major daughters one is married and other is unmarried.

pension plus FD interest comes to above Exemption Limit and I have to pay Tax but if i dont to go beyond Exemption Limit and i transfer FD interest Portion to my married and Unmarried Daughters then Can i consider as gift and Pay no Tax ? if It is Gift then How mUch can be transferred ? is there Any Gift limit?

please advice how i can reduce my tax?

CA Amit Jaiswal

CA Amit Jaiswal (Expert)
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21 September 2012 Even if you trf the int to ur daughter, still it will be taxable in ur hands.
It will be exempt in hands of ur daughter as gift from relative.

All the Best.....

sivadas chettoor

sivadas chettoor (Expert)
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21 September 2012 Your matter is primarily concerned with tax planning in respect of the investment of retirement benefits. Attention is invited to section 64 of the Income tax act 1961. The rigours of the section gets attracted when you gift funds to your wife or son's wife or minor child(married or unmarried).It also deals with funds transfered to other persons for the benefit of your spouse or son's wife.
Thus if you gift funds to your daughters (assuming both are not minors) the income there from shall not be clubbed with your income and thus probably you may end up with no tax or a lower tax liability.
You may also consider investing some funds in the tax saving schemes under section 80C etc. You may think of investing in PPF also where the interest is exempt from tax and hence the interest on PPF plus the tax savings may give you some advantages. Anyway consult a tax practitioner.

siva208@yahoo.com

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jinesh

jinesh (Querist)
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22 September 2012 what i did i have transferred the Funds to both major and My wife and i have remained with only pension Income. I have Considered the Income of both my major daughters ( Which they got from ConstructionCo.-cash Interest) into MY Return for A.Y.2011-12.they both not file ITR Ever. Now I wnat to file ITR of Both thn What to do?

If I was wrong in clubbing then how i can correct my Mistake because i have paid Tax on it.

2) how they can file Return for A.Y.2011-12 becoz Amount is Cluubed in my return?

Pls Explain. Can i demand refund on Excess Paid Tax