Clubbing of Income

aa_enigma_zz 1
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I rcvd rs. 20 lakh 4m my father through cheque for doing biz. will the income generated from this amount will be clubbed in my father's salary.

Thanks & Regards

gift income-clubbing
1 Answers

You can treat this amount as Gift from father and then income on this won't be taxable in hands of father. All tax will be payable in hands of son in this case.

Gifts from relatives is also exempt from income tax, so there won't be any tax on 20 lakhs received too.

Pankaj Batra5212

Sir,

By transfering this amount to me, is he not reducing his tax bracket.

Thanks & Regards

aa_enigma_zz•

he still will have to pay taxes on his income. After tax payment, he may have savings, from which he can gift amount to you.

Pankaj Batra•

Sir,

He gave me this amount from his savings. From this savings , he was getting the interest amount , which eventually was adding up to his annual income. My ques is, by transfering this amount, is he not lowering his tax bracket.

Thanks & Regards

aa_enigma_zz•
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