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?
1 Answers
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.
Tax on gain / profit on gifts made by spouse is still not clear. Relation with spouse does not comes under blood relation category.
Sorry for the confusion. Wife is also covered under relatives list, payment to which is tax free.
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-
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