You are here: Home » PF » Features » Tax
Business Standard

Readers' Corner: Taxation

Kuldip Kumar, partner and leader, personal tax, PwC India, answers your questions

Kuldip Kumar 

Can I gift money to my father and minor son? Can the investment in their name earn tax-free income up to Rs 2.5 lakh? Under the Income Tax Act, where an individual transfers any asset (including cash) to his or her spouse otherwise than for an adequate consideration or as gift, the income earned from that asset is considered as income of the transferor for taxation purposes under the clubbing provisions.

Similar clubbing provisions apply in case of transfer of asset/cash to the minor son. However, you will be able to claim deduction of Rs 1,500 per child against the taxable clubbed income. ...

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sun, August 14 2016. 22:04 IST