Who will have to pay tax on amount which I have given to my parents.
Me or my parents?
9 Replies
CA.Ganesh
(Practicing Chartered Accountant)
(308 Points)
Replied 12 March 2012
Gift given to parents are exempt from tax
Raman Aggarwal
(Expert)
(363 Points)
Replied 12 March 2012
ONLY YOU WILL LIABLE TO PAY TAX ON YOUR INCOME AND YOUR FATHER WILL NOT BE LIABLE TO PAY TAX U/S 50
CA.Ganesh
(Practicing Chartered Accountant)
(308 Points)
Replied 12 March 2012
You cant avoid tax merely by gifting to parents
Rakxit
(Analyst)
(31 Points)
Replied 12 March 2012
My parents' income doesn't fall in taxable range. Is it possible to reduce my tax burden by by transfering some part of it to my parents?
CA SACHIN VIJ
(Chartered Accountant)
(112 Points)
Replied 13 March 2012
For Businessman - Show parents employed in business and claim salary / remuneration etc.
For Salaried - the easiest way is to pay rent to your parent and claim HRA deduction from salary.
Shewta
(Accountant)
(117 Points)
Replied 15 March 2012
Income tax slabs 2011-2012 for General tax payers
| Income tax slab (in Rs.) | Tax |
|---|---|
| 0 to 1,80,000 | No tax |
| 1,80,001 to 5,00,000 | 10% |
| 5,00,001 to 8,00,000 | 20% |
| Above 8,00,000 | 30% |
Income tax slabs 2011-2012 for Women
| Income tax slab (in Rs.) | Tax |
|---|---|
| 0 to 1,90,000 | No tax |
| 1,90,001 to 5,00,000 | 10% |
| 5,00,001 to 8,00,000 | 20% |
| Above 8,00,000 | 30% |
Income tax slabs 2011-2012 for Senior citizen (Aged 60 years but less than 80 years)
| Income tax slab (in Rs.) | Tax |
|---|---|
| 0 to 2,50,000 | No tax |
| 2,50,001 to 5,00,000 | 10% |
| 5,00,001 to 8,00,000 | 20% |
| Above 8,00,000 | 30% |
Income tax slabs 2011-2012 for Very Senior citizen (Above 80 years)
| Income tax slab (in Rs.) | Tax |
|---|---|
| 0 to 5,00,000 | 0% |
| 5,00,001 to 8,00,000 | 20% |
| Above 8,00,000 |
30% |
Source: https://financeminister.in/Income-tax-slab-2011-2012
meabhijit
(Project Manager)
(172 Points)
Replied 17 March 2012
As per my understanding, income from gift to parents is not taxable for children. The concept of income clubbing does not valid in this case. The income clubbing is valid when parents gift the money to children and the income from gift is then taxable for parents.
Rakxit
(Analyst)
(31 Points)
Replied 21 March 2012
| Originally posted by : meabhijit | ||
 |
As per my understanding, income from gift to parents is not taxable for children. The concept of income clubbing does not valid in this case. The income clubbing is valid when parents gift the money to children and the income from gift is then taxable for parents. |
 |
You mean, I can transfer my tax liability to my parents by giving them cash gift?
Anil
(Manager)
(26 Points)
Replied 21 March 2012
One can tranfer amount to his parents. This will invite clubbing provisons. However income from interest income earned would be taxable only in the hands of your parents.
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