• Is transferring parents money to my account to pay personal loan EMI taxable?

I want to take a personal loan for home renovation and my father wants to contribute for EMI payment by transferring 50,000₹ to my account. Will that payment be taxable to me?
Asked 2 years ago in Taxation from Pune, Maharashtra

Father can gift any amount of money out of his taxable income to you without any tax implication on you

2) Parents and children falls under the specified list of 'relatives' who are exempt under the Income Tax Act as recipients of gift money.

3) Therefore, in the example you have cited, you will not have to pay any tax on the Rs 50000 gift amount. However, you will be liable to pay tax on any income derived from it.

Ajay Sethi
Advocate, Mumbai
74388 Answers
4450 Consultations

5.0 on 5.0

No such payment is not taxable.

Instead make a transfer of 49,999/-.

Go ahead and ask your dad to transfer money to your account, in the column which asks for purpose of paymwnt write GIFT.

Regards

Anilesh Tewari
Advocate, New Delhi
17614 Answers
288 Consultations

5.0 on 5.0

Declare this as a cash gift from your father, and in the said case this sum will not be taxable.

Vibhanshu Srivastava
Advocate, New Delhi
8957 Answers
153 Consultations

5.0 on 5.0

Just teat that as interest free loan from father. This is not taxable.

Vimlesh Prasad Mishra
Advocate, Lucknow
6371 Answers
20 Consultations

4.9 on 5.0

1. As per my knowledge is concerned, it is not taxable in your hands.

2. It is only a family settlement between you and your father, with or without interest, such amount of Rs. 50,000/- taxable for your father if he earns such amount in the taxable year.

3. To be more safer you are advised to consult an income tax practitioner.

Kishan Dutt Kalaskar
Advocate, Bengaluru
5279 Answers
171 Consultations

5.0 on 5.0

1. It is not taxable. Since it is a gift from one relative to another it is exempt from tax.

2. Tell your father to mention the purpose as 'gift'.

Ashish Davessar
Advocate, Jaipur
28564 Answers
835 Consultations

5.0 on 5.0

1. This amount is not an income for you to be taxed by the I.Tax department.

2.It is either loan or gift which attracts no I.Tax at its present level.

3. The said amount is not taxable.

Krishna Kishore Ganguly
Advocate, Kolkata
24025 Answers
659 Consultations

5.0 on 5.0

NO.

Rajashekar
Advocate, Bangalore
570 Answers
4 Consultations

4.8 on 5.0

Hi,

No, the amount will be considered as gift from your father and will be exempt in your hands.

Regards,

Keerthiga Sharma

M.Com., CA, LL.B

Keerthiga Sharma
Advocate, Greater Mumbai
44 Answers
2 Consultations

5.0 on 5.0

The gift by money within the relations are not taxable.

T Kalaiselvan
Advocate, Vellore
64348 Answers
834 Consultations

5.0 on 5.0

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