Aditi Jain (CA FINAL) (97 Points)
02 November 2017I received Rs 10 lac from my father 3 years ago (I was 21 Yaers old)
i invested that money in Fixed Deposits and earned interest thereon now i want to gift Rs 5 lacs to my mother.
I want to know that :-
1. Will it attract clubbing provisions on my father
2. Other tax implications if any ??
Please reply as soon as possible
Thank You
CA Naveen Chand
(Chartered Accountant)
(12729 Points)
Replied 02 November 2017
YES the interest income will be clubbed in the income of guardian whose income is higher . . .
CA Naveen Chand
(Chartered Accountant)
(12729 Points)
Replied 02 November 2017
Parents and children falls under the specified list of 'relatives' who are exempt under the Income Tax Act as recipients of gift money. Therefore, in the example you have cited, the son will not have to pay any tax on the Rs 3 lakh gift amount. However, he will be liable to pay tax on any income derived from it.
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