Dont want to bear income tax on Profit/Gain from gifted money

What investment/ scheme shall I advise to my spouse/children/father, if I gift amount (say Rs 150000) to my spouse/parents/children from my taxable income so that I don't have to bear the tax on profit / gain on the gifted money in future?

asked Jul 08 '11 at 14:51 by sakiv1089 18681330


On gift amount payment, there is no income tax payable by receiver if receiver is in direct relation with giver.

If you gift it to your minor children, income/gains generated from it will be added to your income and will be taxed in your hands.

In case gift receiver is not minor, the gains will be added to her/his income and taxed accordingly.

answered Jul 09 '11 at 12:30 by pankaj 5.2k320

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Tax on gain / profit on gifts made by spouse is still not clear. Relation with spouse does not comes under blood relation category.
(Jul 09 '11 at 13:24) sakiv1089
1
Sorry for the confusion. Wife is also covered under relatives list, payment to which is tax free.
(Jul 09 '11 at 16:42) pankaj
Pankaj ji, "Income from gifts" "Suppose a man gifts his spouse Rs 5 lakh and the entire amount is put in a fixed deposit earning 9% interest a year. This means that the wife will earn Rs 45,000 as interest income, but this money will be added to the husband's account and he will have to pay tax on it." The above is taken from Economics Times Dtd. 18th July'11 - Link- http://economictimes.indiatimes.com/personal-finance/tax-savers/tax-news/ET-WEALTHl-Filing-income-tax-return-Include-income-from-all-sources/articleshow/9247058.cmsfinance-
(Jul 18 '11 at 09:26) sakiv1089
If you give the gift with proper gift-deed then income won't be added to your income, But if you just transfer the amount to wife's account and invest from there, it will be taxed in your hands.
(Jul 18 '11 at 20:23) pankaj
Sir, What do you mean by "Proper Gift-deed"? How it can be prapered...can I gift the amount every year on same deed or I shall prepare seperate deed for every gifted amount / every year..?
(Dec 19 '12 at 15:06) sakiv1089
1
You can create gift deed on plain paper with sign from receiver, giver and two witnesses. It should be created separate for each year.
(Dec 21 '12 at 18:45) pankaj
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Asked: Jul 08 '11 at 14:51

Seen: 1,555 times

Last updated: Dec 21 '12 at 18:45