• How to reduce tax on transfer amount to my mother

After death of my banker father.the death benefits of my father was transferred to my mother.after few yrs I transferred the amount in my name as kvp mutual funds(I am paying tax for that amount.now the kvp and mutual funds amount reaches 22 lkh)..but now I want to transfer this amount in my mother's name..my mother(house wife) don't comes under tax till now..my Q's is
1)shall my my mother hav to pay tax for that amount?(22lkh)
if yes
2)on how much she hav to pay tax?(the whole transferred amount(22lkh)/interest of transferred amount?)
3)how can she reduce tax ?
Asked 4 years ago in Taxation

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6 Answers

If this amount is transferred to her name and it is beyond the taxation limit then she may have to pay the income tax at the applicable rate by showing this as income from other sources.

The quantum of tax amount and possible exemptions can be enquired from your auditor

T Kalaiselvan
Advocate, Vellore
78050 Answers
1543 Consultations

5.0 on 5.0

Income earned on investments made would be liable to tax

2) your mother does not have to pay tax on Rs 22 lakhs transferred in her name

3) she should in her income tax returns declare receipt of Rs 22 lakhs aa gift

Ajay Sethi
Advocate, Mumbai
87895 Answers
6207 Consultations

5.0 on 5.0

The amount originally transfered not as gift but as loan may be returned to her and on the difference she has to pay capital gain tax as per the time of investment.

She has to submit tax on income out of this amount and the venues available for saving taxes may be used but are very limited for senior citizen.

Vimlesh Prasad Mishra
Advocate, Lucknow
6848 Answers
23 Consultations

4.9 on 5.0

1. there is a gift tax for receiving such a huge amount of money. if the inetrest part from 22L does not cross the taxation threshold then she need not pay any tax.

2. its to be calculated along with other money she has or is likely to receive.

3. Reduction of tax is possible by making investments in various Govt. bonds and securities.

Devajyoti Barman
Advocate, Kolkata
22515 Answers
402 Consultations

5.0 on 5.0

NO NEED TO TAX ON ANY AMOUNT ON TRANSFER BECAUSE THE AMOUNT WHICH YOU TRANSFERED HAS ALREADY TAXED IN THE HANDS OF YOUR FATHER SO THE BASIC AMOUNT WILL NOT BE TAXED

2.YOU HAVE INVESTED IN MF IF YOU HAVE GET PROFIT IN THAT IT WILL TAXED(IF IT IS ELSS IT WILL NOT BE TAXED)

Hemadri Chandrakanth
Advocate, Vijayawada
98 Answers
10 Consultations

4.0 on 5.0

If you want to transfer any amount of money to your mother, the same will come under the purview of Gift, in as much as you have already paid relevant taxes for the said money. There can be no tax liability upon a gift made from a son to his mother.

Gunjan Shah
Advocate, Kolkata
16 Answers

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