Dear All,
After the death of my father in may 2012 the Fixed Deposits of my father were transferred on my mother’s name.
Now my mother wanted to transfer those FD of 5 Lac on my name by premature closing the Fixed Deposit and then giving me cheque to make similar Fixed Deposit on my name.
Now I have few questions related to Tax …..
1. Since my mother got money from my fathers FD any TAX liability to my mother ? .i.e. Income TAX or Capital Gain Tax or any other Tax. . (money in question is NOT my mother’s self earned money, it’s my fathers money she got after his death)
2. Now since she is planning to give me all that amount, am I supposed to pay ANY type of TAX, if I receive that 5 Lac by cheque from my mother for making FD on MY NAME. (money in question is NOT my mother’s self earned money, it’s my fathers money she got after his death)
3. Pl. guide me what will be a good option. Taking 5 Lac from my mother through cheque. Or taking 5 Lac through cheque WITH a gift deed of 5 Lac rupee. (Am I or my mother supposed to pay any GIFT TAX, if the money is taken using cheque with GIFT DEED)
4. Is there any Limit that my mother can’t give me more than --- Lac of rupee.
5. If I am not wrong, the interest earned by me from those 5 Lac. FD will be added into my taxable income. (pl. correct me if I am wrong)
I will appreciate if Mr. R. Rajagopalan or someone else please answer me with a cut-paste of required section/law under which my answers stand firm.
thanks
