• Is gifting money to mother possible to avoid tax

Dear Consultant,
Good afternoon
Is gifting money to mother possible to avoid tax , she is partially dependent on me , if yes how much money can I gift and which section is it claimable under 
example : 80c etc..
Asked 7 years ago in Income Tax

You can gift money to mother . There is no Tax on Gift to Mother if given for necessity.

gift tax is covered under section 56(2) of the Income Tax Act, 1961.

Shyam Sunder Modani
CA, Hyderabad
1408 Answers
164 Consultations

5.0 on 5.0

Dear Sir,

If you gift money to your mother and your mother invest that money to earn some income then, income earned by your mother from that money shall be taxable in her hand. That's how you save taxes. There is no speacial deduction for this.

Please feel free to call/revert in case you need further guidance.

Thanks and Regards,

Abhishek Dugar

CA CS B.Com

Abhishek Dugar
CA, Mumbai
3576 Answers
183 Consultations

4.8 on 5.0

There is no limit. Only thing need to check is that the amount if the Income tax officer sees should not look that to save tax you have gifted as the same comes under Clubbing provisions of the Income Tax Act,1961 where in the income from mothers investment will be clubbed in your hands.

Shyam Sunder Modani
CA, Hyderabad
1408 Answers
164 Consultations

5.0 on 5.0

There is no limit on gift to your mother and there is no tax liability either in your hands or in her hands. You will not get any deduction u/s 80C, but you can claim deduction u/s 80D for payment of premium on medical insurance of your mother upto Rs 25K and health check ups upto Rs 30K.

B Vijaya Kumar
CA, Hyderabad
1000 Answers
124 Consultations

5.0 on 5.0

You can gift any amount vide cheque/electronic means. You just have to show the sources of funds.

You can gift 2 lacs or more in cash.

Please feel free to call/revert in case you need further guidance.

Thanks and Regards,

Abhishek Dugar

CA CS B.Com

Abhishek Dugar
CA, Mumbai
3576 Answers
183 Consultations

4.8 on 5.0

Hello Sir,

The amount of money you gift to your mother will be exempt in her hands i.e she will not have to pay any taxes on it. But you will be illegible to claim a deduction of the same in order to save taxes.

Trust this clarifies your query.

Feel free to call / get back in case of further clarifications.

Thanking You.

Regards,

Rohit R Sharma

BCOM, ACA, LLB-GEN, CERT. FAFP

Rohit R Sharma
CA, Mumbai
2104 Answers
95 Consultations

5.0 on 5.0

Hello Sir,

Gift to a relative is exempt. So there is no maximum limit as such in your case.

But it is advisable to prepare a Gift Deed for future reference and a precautionary measure for any tax department queries.

Trust this clarifies your query.

Feel free to call / get back in case of further clarifications.

Thanking You.

Regards,

Rohit R Sharma

BCOM, ACA, LLB-GEN, CERT. FAFP

Rohit R Sharma
CA, Mumbai
2104 Answers
95 Consultations

5.0 on 5.0

Hi,

As per definition under income tax rule for income tax on gifts, is that any amount received from specified relatives is totally tax free in the hands of recipient. So if a relative gives you gift in form of cash/cheque or in consideration, you will not have to pay any tax on the amount received.

Following is the list of relations which are considered as “relatives” for this

Your spouse

Your brother or sister

Brother or sister of your spouse

Brother or sister of either of your parents

Any of your lineal ascendants or descendants

Any lineal ascendant or descendant of your spouse

Spouse of the persons referred in above points

And there is no upper limit o the gift amount .it is advisable that report this receipt under exempt income in her tax return.

Vishakha Agarwal
CA, Bangalore
448 Answers
85 Consultations

5.0 on 5.0

Hello SIr,

You can very well gift money to your mother, it will be totally exempt in her hand.

Regards

Keerthiga Padmanabhan

M.Com., CA, LLB

Keerthiga Padmanabhan
CA, Greater Mumbai
784 Answers
27 Consultations

5.0 on 5.0

Hello Sir,

There is no maximum cap as to how much can you gift but make sure to maintain documentary evidences and preferably prepare a Gift Deed for the transaction.

Regards

Keerthiga Padmanabhan

M.Com., CA, LLB

Keerthiga Padmanabhan
CA, Greater Mumbai
784 Answers
27 Consultations

5.0 on 5.0

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