Sir, Me and my wife both are tax payee, my father is in farming and my mother is a housewife. If I open a RD or FD on my parents name, income from that FD/RD will be clubbed with my income or it will be considered separately. Regards, Narian Singh
1 Answers
Dear Narian,
You can gift the amount to your parents and they in-turn can invest that in FD/RD or other investment avenues.
Gift Transaction is not subject to tax between you and parents.
The income generated by the investments is subject to taxes (if any) and will be clubbed to your parents income only.
Kindly go through below articles;
http://www.relakhs.com/gift-income-tax-rules-detailed-guide/
http://www.relakhs.com/agricultural-income-land-tax-treatment/
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