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Tax on gift received

Tax queries 548 views 1 replies

KAILASH

B.Com

59 Points Joined June 2013

I gifted 1 lac each to my daughter & wife from my legtimate source. I am a salried person. Does any of us need to pay any tax on gift amount. My wife & daughter had put the gift amount in TDR gaining 3 - 5K in interest. They have some earning thru Home tuitions below 1 lac each annualy. Do they need to pay any tax on interest or income and need to file any ITR.

Replies (1)

Guest

There is no tax on gifts made to a relative.

They can invest in tax exempt investments so that there is no clubbing of interest with you. There is no tax on income from the Public Provident Fund and gains from shares and equity mutual funds if held for more than a year.

They don't have to file IT return if their income does not exceed Rs 200000/- before deductions