Hello,
Is it possible that I can gift some amount to my parents or spouse and invest the same in share or any other instrument (FD, Mutual fund) with their name to avail tax saving and lower tax slab as I come into higher tax slab.
Thanks,
Manish
Manish (Software Engineer) (103 Points)
19 August 2020Hello,
Is it possible that I can gift some amount to my parents or spouse and invest the same in share or any other instrument (FD, Mutual fund) with their name to avail tax saving and lower tax slab as I come into higher tax slab.
Thanks,
Manish
Yudhishthir Sharma
(Article)
(207 Points)
Replied 19 August 2020
Sagar Patel
(Tax and Business Consultant)
(11611 Points)
Replied 19 August 2020
Manish
(Software Engineer)
(103 Points)
Replied 19 August 2020
Hi Sagar/Yudhishthir,
Can you please section for the reference as on multiple place i am receiving response that parent's interest income on your transfer fund will be taxed in your hand. So if you can share some reference for me that would be helpful.
Thanks,
Manish
Kamal Verma
(Financial advisor)
(579 Points)
Replied 19 August 2020
Practically, gift must be paid from elder to younger otherwise provision for clubbing of income may be applicable.
Manish
(Software Engineer)
(103 Points)
Replied 19 August 2020
@ Kamal Verma Sorry Even gift can be given from younger to elder but can't we transfer fund to our parents for their need and they can invest it.
Even if it's not allowed can you please share section which describe this SO that I can get more insight.
Sagar Patel
(Tax and Business Consultant)
(11611 Points)
Replied 19 August 2020
LIVE Course on Foreign Exchange Management Act (FEMA)(with recording)