Tax on interest income of a gift to a relative
bsshankara last edited by ftForumMod
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?
jatinderchd last edited by
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.
LandPel last edited by
I think the receiver is the beneficiary in this case is the one who need ro pay the tax on the gift as it is now his asset. The tax is implemented on the person who owns a thing for a particular period of time excluding sales taxes. Do you agree with me?