Reg. gift of money
parthabandhu guha
(Querist) 04 December 2012
This query is : Resolved
1. My 30 years old son is employed in a bank. However, I want to give him Rs.2,20,000/- as gift. Can I give him the money what will be the income tax implication.
2. If I give him the money as interest free loan payable in 30 years then will it attract any income tax.
ajay sethi
(Expert) 04 December 2012
in your income tax returns do show that you have given loan to your son . give loan by cheque only
Raj Kumar Makkad
(Expert) 04 December 2012
In first case, no tax implications are involved whereas in second scenario, you shall earn interest income which shall be taxable.
Vineet
(Expert) 06 December 2012
No tax implication in either case. Pay gift by cheque. You may have to explain your source of funds.
Raj Kumar Makkad
(Expert) 06 December 2012
The opinion of Vineet is accurate as he himself deals in tax matters.
parthabandhu guha
(Querist) 06 December 2012
I gave my son the money in cash after taking overdraft from a Fixed deposit kept in the bank where my son is employed. The F.D is in joint name with my son and myself and I am the first holder. The money is from my retirement benefit from Central Government.
Since I have given him in cash, will there be any problem from Income Tax angle ?
ajay sethi
(Expert) 06 December 2012
how come the facts of case has changed ? you ahd earlier mentioned you want to give loan to your son of rs 2,20,000 . suddenly after receipt of replies from experts facts change .
parthabandhu guha
(Querist) 06 December 2012
Dear Mr. Shethi I have already submitted an undertaking to my sons employer to the effect that the money has been given to my son as interest free loan payable in instalments on long term basis and as per financial convience of my son.
When my son gave intimation to his employer regarding purchase of this moveable property, he has attached my above undertaking.
May I face any problem from any authority ?
ajay sethi
(Expert) 06 December 2012
no why shoud you face problems . you declare in your Itax retruns that you have give loan to your son of Rs 2,20,000
Raj Kumar Makkad
(Expert) 06 December 2012
If you have to raise subsequent query not related with earlier, better to raise in separate thread.
