Hi,
I have deposited 12 lacks from my salaried income in current FY to my Sr citizen parents joint account as fixed deposit. Since this 12 lacs is from my salary account and I have paid IT for my salaried income so will my parents need to pay tax on this 12 lacs or they need pay tax only on interest amount generated from this 12 lacs fixed deposit. kindly suggest. Also please let me know what option should they choose in return filing if they receive AIR notice from IT dept.
1 Answers
Hi,
You can consider this as a Gift Transaction, and taxes are not applicable in your case.
Kindly read:
https://www.relakhs.com/gift-income-tax-rules-detailed-guide/
Yes, interest income generated on this deposit is subject to taxes, and they are accountable for it.
While filing ITR they can disclose the interest income under the head 'income from other sources' and Rs 12 Lakh gift as 'exempt income'.
Please login or Register to submit your answer