I have a tax query
If a father, let say, gifts 50 lakhs bank balance and property worth 1 crore to Son and same gifts to daughter in law. Would there be any tax on such gifts in the hands of both Son and Daughter in law.
How about future income generated out of Property by way of rent and bank balance generating interest in the hands of both Son and Daughter in law?
2 Answers
Hi,
Kindly note that rules of clubbing of income comes into picture if one gifts a certain amount to his/her spouse, or minor children or Son’s wife. Any income earned by the recipient on the gift shall be clubbed with the income of donor.
Any gifts from a father to his son are tax-exempt. No clubbing of income rules apply here. The taxable income accrued on such gifts are taxable in the hands of Son only after the receipt of gifts (amount/property).
Any gifts from a father to daughter-in-law are tax-exempt. However, clubbing of income rules apply. The taxable income accrued on such gifts are taxable in the hands of Father-in-law after the receipt of gifts (amount/property).
Kindly read :
https://www.relakhs.com/gift-income-tax-rules-detailed-guide/
https://www.relakhs.com/sale-gifted-property-capital-gains/
Thanks for the detailed explanation. Very clear and comprehensive!
Dear Sreekanth, Query on your last revert:
Can father transfer money to Minor son. Assuming that will put clubbing into effect for future income generated out of that gift.
Will clubbing come into effect if father/ mother gift money/property to married daughter.
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