Hey Sreekanth ,
Suppose my mother has some amount of money in her account.
Now i transferred 4 lac each from my sister's account and my own account into my mother's account and invested the 8 lacs in equities from my mother's account. We go for long term investment. So can you please tell what will be the tax liability on Gift on my mother (i.e tax on the amount she received from me and my sister). Can we do this ??
1 Answers
Hi,
The amount transferred from your account and your sister's account to your mother's bank account can be treated as GIFT transactions. No tax implications on this.
But it is advisable for your mother to file Income tax return for that FY to avoid any tax notices. She can disclose the gift amount in ITR under Exempt income section.
If she uses this amount and invests in Equity markets, the long term capital gains (if shares/equity funds are held for more than 12 months) then such gains are tax-exempt.
Related articles :
https://www.relakhs.com/gift-income-tax-rules-detailed-guide/
https://www.relakhs.com/asset-classes-returns-tax-implications/
https://www.relakhs.com/mutual-funds-taxation-rules-capital-gains-tax-rates-on-mfs-fy-201516/
Thank You so Much !! You are doing a wonderful job
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