21 January 2009
I am making a regular payment(without any obligation) of Rs. 50,000.00 per annum to my mother. She deposits the money in fixed deposits in bank. Can the AO treat the intrests that is earned on these fixed deposits as my income instead of my mother's. Is there any provision in law regarding the same?Pls guide.
25 January 2009
I have since checked by referring to provisions of Sec 56(2)discussed in Para 77.5 of 29th edition of Singhania's Ready Reckoner and find that "gift" from son to mother is covered under Exceptions; hence feel that view expressed by me on 21st Jan 09 is correct
CAclubindia
