Tax on income earned out of gift

Mrunmai Deshpande (Querist) 21 January 2016 This query is : Resolved
If I gift a BANK FD by putting my earning son's name as 1st holder and putting my name as 2nd holder who has to pay tax on the interest earned on the FD? Please advice.

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rajagopal.s (Expert) 21 January 2016
Hi
If your son is a major, then he has to pay tax.
If your son is a minor, then you have to pay tax.

Rajendra K Goyal (Expert) 21 January 2016
Generally Ist named person is responsible to pay tax / TDS.

Adv. Yogen Kakade (Expert) 22 January 2016
As you are gifting the Bank FD to any beneficiary then the original depositor has to pay the tax on the interest earned. If you and your son are the original depositor and your son is the first name holder and if he is of major age then he has to pay the taxes.. but generally the dividation of the interest amount between both of you might attract the share in the tax payment.
Adv. Yogen Kakade
Jurycon Incorporation
Advocates & Consultants
Email: juryconincorporation@gmail.com
Web: www.juryconn.in Call: 020-65248888

K.S.Srinivas (Expert) 01 February 2016
Income Tax liability is calculated on the first first holder's name.

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