Gift to father

Can I transfer amount to my father who is a senior citizen now in the form of gift. Is this legal? Is there any limit to gift the amount? Does any one of us have to pay any tax? Please clarify

asked Sep 14 '11 at 14:42 by Srihari 165711

Pankaj, Further clarification.... Instead of gifting to my father, Can I gift it to my Son who is still a minor(16 years) and keep my father as a gaurdian. Since my self and my wife fall under high bracket of income tax, is this a legitimate way to saving the tax.
(Aug 10 '12 at 14:56) Srihari
You can gift amount to Son and this amount would be tax free for him. However just to make it clear, you won't have any income tax benefit because of gifting money to anybody.
(Aug 12 '12 at 16:37) pankaj
Thank you for response. Looks like i am not clear. 1. Want to gift to my son and keep my father as gaurdian. Since he is a senior citizen any returns of that gift money(planning to open an Bank FD) is taxible as as per senior citizen tax slab. Hence please advise can I take this route. 2. If the first option is ruled out, then I will make my wife as gaurdian. Will pay the taxes accordingly till such time my son becomes Major. Please advise..Regards
(Aug 13 '12 at 13:15) Srihari
When you gift an amount to your son, it becomes his/her. Now as he is minor, his income on such gifts would be added to taxable income of parent with higher income in the year the minor first earns income. In case your son has not shown any income in past, his income would be clubbed to income of his father/mother whoever earns more.
(Aug 13 '12 at 16:34) pankaj

You can transfer any amount to your father as a gift. There is no income tax payable for you or your father on this transaction.

To legitimate this transaction, you can have this written on stamp paper (gift deed signed by both) and pay your father through an account payee cheque.

answered Sep 14 '11 at 18:56 by pankaj 5.2k320

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Wud the income derived therefrom be taxable in the hands of the donor or the donee?
(Sep 27 '11 at 17:57) Thyagarajan Mani
It won't be taxable to both.
(Sep 27 '11 at 21:44) pankaj
Hi Pankaj, I doing NEFT transfer to my father's account on monthly basis, Can claim the tax benifit on this as a gift. As the transaction is NEFT, anyway its a white transaction Do i still need have this on stamp paper? Thanks Vishwanath Chenni
(Jan 17 '12 at 12:11) Vishwanath
There is no tax deduction/exemption on gifting money to anybody for donor. For gift receiver, it won't be taxable if he/she is in relation with donor. To give gift a legal significance its better to execute it through a gift deed.
(Jan 22 '12 at 21:19) pankaj

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Asked: Sep 14 '11 at 14:42

Seen: 1,504 times

Last updated: Aug 13 '12 at 16:34