Hi,
I have saved income of around 5L which is saved from my salary after paying of applicable taxes. If I give this saved post tax cash saving to my father, who inturn invests this money in Stocks / FD etc, will there be following tax implications:
1. Do I need to pay gift tax on the above cash gift given to my father? Is there any maximum cap on cash gift that can be given to parents?
2. Is my father liable to pay tax on cash gift received from me?
3. If my father re-invest this money into stocks / FD, will the earnings through these investments be taxable to me or will it fall solely under my fathers income slab who is a senior citizen?
is right at second point
CAclubindia
