Enquiry by dept. or tax liability on fd
Suraj dhawan
(Querist) 19 January 2016
This query is : Resolved
I am planning to invest 5,00,000/10,00,000 (whichever may be advisable) as a term deposit with bank.
-i am a non tax payer as i am a student
-i am getting this lumpsum from my mom who has given me all her savings.
Queries:-
a) is that transaction mentioned above would raise any inquiry of income tax dept. if yes than what should be the amount of deposit which raises no such inquiry
b) do i have to pay tax on that?
Anirudh
(Expert) 19 January 2016
The information will be passed on by the Bank to the Income Tax Department.
However, if any enquiries are made by the Income Tax Department, you or your mother will have no problem, SO LONG AS YOUR MOTHER IS ABLE TO INDICATE HOW SHE GOT THE MONEY AND WHETHER SHE HAS PAID TAX PROPERLY.
Neither you nor your mother have to pay tax on the amount of gift.
However, if you are minor, then the interest earned on the FD will be taxed in the hands of your mother.
If you are a major, then the interest will be taxable in your hand, provided your income including the interest above the tax exempt limit.
Guest
(Expert) 19 January 2016
Do you have a PAN card?
Also, what would be the mode of deposit, whether by cheque/ draft or cash?
sanjeev kumar goel
(Expert) 19 January 2016
You can invest as much amount as you like but the information from bank will be pass on to the income tax department. If your mother is giving you all her savings then there is no tax liability on you or your mother but the income generated from this investment will be taxable in your hands if you are major otherwise in the hands of your mother. If any inquiry comes from income tax department then your mother has to explain the source of savings and her income.
Rajendra K Goyal
(Expert) 19 January 2016
Get a PAN card if not having already.
Interest would be taxable in your Hand.
Your mother can get the FDR prepared from her account in your name. Do not forget to mention PAN no. in the FDR.
It would be practically advisable to get FDR of 2 lacs each as in case of need, one or two FDR need to be broken.
V R SHROFF
(Expert) 30 January 2016
NO TAX PAYABLE
MAX INT PER ANNUM WILL ALSO BE LESS THAN 1L SO TAX FREE
