Tax on interest income of a gift to a relative



  • If a gift which is tax free(ie from a son to father) in the form of cash is invested in a deposit by the receiver(i.e. the father) and it earns interest, to whose income should the earned interest be included, the donor or the receiver?



  • Hi, The interest earned shall become the income of the receiver i.e.father in this case. Here,interest is being earned by the receiver ( on deposit made in his name) that becomes his income for the financial year.


 

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