Money gifted to father - itr requirements and income tax liability

ITR 187 views 2 replies

Sanchita

IT Consultant

21 Points Joined August 2018

Respected CA Community,

Greetings !

I have few basic queries around giving money to father (who is a retired govt. employee and his only source of income is the interest that he gets from his retirmenet money) :

(1) I plan to give around 10 lakh INR to my father. Do i need to mention this in my ITR when i file income tax return next year ?

(2) Does my father needs to mention this in ITR that he received money from me?

(3) Does he has to pay Income Tax on INR 10 lakh?

(4) Do i need to do any paper work for giving money to my father or i can just simply transfer the money to his account?

(5) Any other thing i need to know regarding giving money to my father?

Look forward to your responses. Thanks in advance.

Reagrds

- Sanchita

Replies (2)

1) no need to mention in your ITR
2) yes.. as exempted income
3) no
4)as such in income tax perspective there's no requirement but still advisable to prepare a gift deed
5. since there's no explicit provisions in income tax in respect of gifting money to father, there's no certainty in application of clubbing provisions

RAJA P M

"Do the Right Thing...!!!"

128121 Points Joined January 2015

Yes... I agreed to Mr Rama Krishnan View...

As per income tax the above said Gift exempted... No more tax liabilities...
Also better to create a deed as per Mr Rama Krishnan View...