I want to gift money to my mother every month. Do I have to pay tax on interest ? How to avoid clubbing of income in this case ?
Gifting money to your mother is completely tax-free under Indian income tax laws, as parents are classified as ‘relatives’ under IT.
How much money it will be in a FY? there are different ways to avoid clubbing of income depends on how much money will be transferred or is it cash?
I am talking about interest on that funds.
Bank Transfer. I will File ITR and show this as a gift.
I dont think clubbing provisions apply to mother in that way…
I would say, dont worry about it… if its not a huge amount, and if you can make it not too obv that its re-invested immediately, that can be managed either way.
Income tax clubbing provisions (Sections 60-64 of the Income Tax Act) generally do not apply to parents when you transfer money or assets to them. Gifts made to parents, or income generated from assets gifted to parents, are taxed in the hands of the parents, not the donor.