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
1 Answers
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.
Wud the income derived therefrom be taxable in the hands of the donor or the donee?
It won't be taxable to both.
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
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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.
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.
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