Saving Tax through Family! Surprised! Yes, we can save tax through our family members i.e. Parents, Major Children’s and Wife. To Save Tax through Family members we needs to invest in way that our tax burden shifts to our family members and we can take the benefit of Income Tax Slabs. Saving tax Through means not only saving in tax but also means Post Tax higher returns on your Investment.
Here is how we can save tax through our family members.
Save tax through Through Parents
You can save tax through our own parents as well as through our Parent in-laws. To achieve this goal you needs to give away a portion of your funds, either as a gift or a loan, to your parents as well as your parents in law so that in years to follow your income tax burden becomes lighter as the income on funds transferred by you to them which would bring in income would be taxed in their hands.
Assuming that both the parents are senior citizens. Here’s how you go about it. Income tax deductions allow senior citizens a tax-free income of Rs 3 lakh. To exhaust this limit, say you gift Rs 28 lakh to each parent in cash. Of this, both can individually put Rs 15 lakh in a senior citizens savings scheme that earns a return of 8.3 per cent and pays interest every quarter. Each will get yearly interest of nearly Rs 1.2 lakh. If they invest the remaining Rs 13 lakh each in the State Bank of India’s (SBI) fixed deposit (FD) of eight-years (at an interest rate of 7.25 per cent) that pays interest each quarter, it will fetch them an income of nearly Rs 0.95 lakhs annually. That means both parents have earned Rs 2.4 lakh from the senior citizen saving scheme and another Rs 1.9 lakh from SBI’s five-year deposits each year. A total Tax savings on Income of Rs 4.3 lakh – the tax-free limit (Rs 3 lakh) that each parent enjoys. So, they don’t even need to file tax returns.
Same planning can be done for parents in laws.
Save tax Through Major Children
All your adult children are as solid as a rock to help you save your income tax. After October 1, 1998, the provisions relating to gift-tax have ceased to exist. Now you are free to gift away your money to your children without attracting gift tax. Investment made by Major Children out of the gift received by you will be taxed in the hands of your children. If for any reason you are inclined to make gifts to your major children, then you may give interest-free loans to your adult children so as to legally reduce your taxable income.
It is lawful to grant interest-free loans to adult children from your own funds.
Save tax Through Your wife
Married taxpayers can make a substantial saving of income tax by setting up two separate independent income tax files, one each for the husband and the wife. If your wife is already filing Income Tax Return then she may continue filing the return with hew new surname and address or with her old surname and address.
Thus, as a result of marriage one should plan a separate income-tax file of the wife. However, care should be taken to ensure that no gift or transfer from husband is made to the wife as clubbing provision may get attracted.
(Republished with Amendments)
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Sir, I am a central govt.employee during 2015-16 my gross salary was 803694/- less allowances 19200/- Balance 784494 agreegate 2500/- i.e. Rs.781994/-deductions
LIC 17406/-
PLI 1716/-
GSLIS 720/-
GPF 2,88000/-
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Total : 307842/-
Section 80 CCC: 1,50000/-
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Total income :631990/-
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Tax : 51398/-
Edu cess : 1542/-
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Total tax paid : 52940/-
during 2015-16 FY 2016-17
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How can I save the Tax of Rs.52940/- or over for the FY year 2017-18 please guide me accordingly.
Also, My husband is retired and his age is 61, two childrens are studying Engg.
I am saving in Mutual Fund i.e. Rs.20,000/- can get income tax exemption.. If i gift 100000/- to my son as gift can get exemption????
Please guide accordingly
Thank you
my father get compensation money, and diveded in family member as sons and daughters. then what are the procedure for income tax
Sir,
I have sold my flat which was on a joined name of me and my father. Now my brother has taken a new flat. We wanted to give our sold flat money to him for buying a new flat. Is our name should come in agreement of new flat? Kindly advise us.
can a brother give gift in cash to another brother through funds generated on closure of his proprietorship firm . if Yes, then there is any limit for giving gift in amount term. whether there is any tax implication on donor or donee in case of such gift????
if i deposite 9 lakhs as fixed deposite in bank i have to pay income tax
sir,
first thank to read my Q? And Ans of this.
Q…Sir i have equity trading A/c i sold 500 Shares of XYZ company of my brother and after some days i bought it share of xyz company and back to brother.
1. What is tax treatment in my books STCG / STCL
2. What is tax treatment in my brothers books
3 Can my brother lend me xyz company shares with nominal interest on 8% pa on the basis of no of day used stock (Value of XYZ company )
4 securities Lending and borrowing between family members allow or not
5 we have agreement between brothers where securities Lending and borrowing between family with the guarantee of my mother (can play role between brother as guarantee (we can say Counter Party defualt any of them) is it valid or not
please reply soon
bharti
hi sir,
please help me income tax file return who to save money pealse gelp me
I have invested in equity funds in my grand-daughter name under mother’s guardianship. If now I invest in tax-saving funds in name of grand-daughter does the mother get advantage of 80C?
I got a cash gift worth 5 lacs from my mother in law. Do I need to declare it in ITR. If yes, where ? I am a salaried person and fill ITR1.
sir,
my father have sell my plot in 2 cr ,this plot situated in my own agricultural land under city limit , total amount is divided in 4 part , i have revived rs 0.5 cr , please help me for tax saving
Hi Sir,
I’ve earned 25K interest from 3 different savings bank accounts. Also earned Rs.4484/- from one FD got matured in Feb 2015(Fiscal 2014-15). Also I have, 3 more FD’s which get matured in Aug 2015 but 10% TDS of Rs.2262/- for these 3 FD’s was deducted by bank for fiscal 2014-15.
Pls. guide me how to file retunrs and pay tax. How to input the details in e-filing regarding 3 FD’s (which are in force now-not matured) for which already 10% TDS was deducted. How much interest I’ve to show in the e-filing. How much tax I’ve to pay.
I’ve savings of Rs.1.6 lacs under 80C.
Can I use my salary money to open FD’s in my wife’s name or my parents(dad is senior citizen) name . Is that interest comes under my income and should I pay tax.
Pls. guide me sir.
I had a joint fd in which my mother as a second holder. And fd made by her separate account. But fd count on my PAN no. Because I am the first holder and also maturity cheque issued by my name it was deposited in joint account where my mother as a second holder. How it can show in income tax return filling?
I invested money through my wife in private Bank FDs and earned interest. Now I am about to retire in a couple of months. So can I get back some money from my wife and put in my name? Also whenever money is given to your children (major) as gift, it is necessary to make any gift deed. If so, can you give format of the same. I seek your kind reply
dear sir,
This tax planning of transferring some of one’s funds to his wife requires clarification. If it is given by way of gifts any income accruing from the gifted property/funds will be taxed in the hands of the transferor only i.e Husband only. In that case how it is posssible to effect a tax planning by gifting amount or property to a wife. Kindly clarify. Also kindly tell reg under which sec we can claim the benefit and if there is any form to submit to the employer to claim exemption. Also kindly tell the calculation how its benefits us. for eg. I’m a salaried person with annual income of nearly Rs 5 lakhs. I invest Rs 1.5 lakhs under sec 80c and additional Rs 50k under NPS sec 80ccd[ib]. So my taxable income is reduced to Rs 3 lakhs. And upto Rs 2.5 lakhs No Tax payable. So, Kindly let me know if I gift Rs 50k to my wife then there is no tax payable by me?
Will transfer of 1.5 lakhs from father’s SB account to major son’s PPF account qualify as gift from father to son for taxing purposes? If it is in addition to 1.5 lakhs put by father in his own PPF account, will both PPF accounts be considered legal?
Will transfer from father’s SB account to a joint SB account consisting of major son as primary holder and father as secondary holder qualify as gift from father to son for taxing purposes? Will the interest earned on the transferred amount be taxable to the son or the father?
My question is that i do a recurring deposit from my father’s income. I am a student so i dont have any income. So the interest earned on the recurring deposit will be part of my father’s income or mine.
Sir
Whether I can give Rs.1000000/- to my son as a gift,to save tds.please also advise what is limit to give gift to son
Thanking you.
@Mr. Puneet Sharma
You cannot take any benefit for payment to your mother
Because there is no such provision in income tax. [its just household exp]
I am married and living with my wife and a kid. My father is expired and mother is housewife and she dont have any source of income. Suppose i am paying Rs 5000/- to my mother who is housewife every month and she does not invests that money. She is using that money for her livelyhood. How can i get tax benefit for this money? Is there any way to get tax benefit for this regular recruring amount?
I’am surprised how a CA can give such ill tax planning.
You should know the diffrence between tax planning and tax aviodence
Tax planning means aap chain kinind le sako, tax avoidence means chinta bhari nind lo
I Strongly Suggest you to kindly do not apply this type of ill tax planning
First it is not planning it is just tax aviodence which is not legal
So I.T.O will club all such income in your hands. As per sec 60 to 64 of income tax act. (only way you can get safe from this sec is when you made parmanent actual transfer of asset to family]
Now there is 2nd side of your act.
Suppose you made transfer of such asset to in-laws family than you cannot able to get money back during their life term[otherwise penalty impose for all previous benifit taken]
If you go for that you will not take back such asset till death of ur inlaws family then you may be save from income tax act
But you cannot claim in such property after death [matlab aapke saala saali ke maje]
If u do it with ur own family then your Brother and sister also get share from such property. [ 10000rs bacha ke 10lac gawa doge]
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please advice me that how i can file a income tax return if i sold my parental home in rupees 40.00 Lacs. This parental house i.e plot was purchased by my father( Late Shri Sevak Ram ) in year 1987 @ cost of rupees 33,000.00
if father wants to gift 10,00000 Lacs to his son and daughter than how to get this gift. How to calculate the income tax.
What else do i keep in mind when i received Gifts.
if father wants to gift 10,00000 Lacs to his son and daughter than how to get this gift with incometax liability nil.
hi,
I want invest 2000000 FD in five different national bank’s and i want to take every month interest from those bank’s in india.Do i need to pay any tax amount for that ? or do i need to submit any form 15 g or form 16 like that ?
After submitting those what is deduction amount and how much can i get monthly amount.
Regards,
Yashwanth.
i am earning 16000 thousand per month. now a days i want to sell my plot at 7 lakh what i have to pay tax?
dear sir, my fiance comes in 10lac annual income bracket
we have not made any investments as its just started..
only bought 6000 rs sbi life insurance policy.
mediclaim, lic, fds, ppf, equity funds… etc are options .. all open.
so about 1.5lac annually i have to invest..
how to diversify.. how to get the maximum benefit.. and how much tax would i be paying after all this.
can u guide me..
ill be very grateful.. just started earning as doctors,,.
I have kept around 20lakhs in fd in a bank. I am a housewife. The bank says that int above Rs.2 lakhs on fd if I have even after giving form 15 G they are bound to deduct tds on fd. Whether any provison is there to avoid tds?
Hi
My fater in law gifted a plot to my wife couple of years back which is about 10 lakhs at present.Now we are planning to sell it off for our child’s education. please guide us. how can we avoid/save tax on that amount?
I bought a land in 2005 in my mothers name as i was not available in India. Now i want to sell the plot to buy an appartment for my self. But it will attract the tax liability for my mother (65 year old) if i sell this land as it is on my mother’s name.
Please let me know, if she gifts me the land what is the procedure and how much will it cost me? I bought that land at the cost of 200 persft and now i am selling it at 2200 per sft.
Is there any other way i can avoid tax?
sir,
my dad is planning to sell his agriculture land(rubber estate) which satisfy the conditions of section 54b as exempt from capital gain but i would like to know if any tax is payable for he proceeds an futher details.
Dear sir
i m a (Ravi Prakash)salaried person and i have a 5lac in years salary.my company do not detect in my PF.
i have a investment to -1lac rent.
40 k- insurance
20k-ppf
10- genral insurance
25k- kisan vikas path.
KINDLY Privode to for TAX saving .
Dear Sir,
I have a house in my name given to me by my dad through a gift deed, now i have booked a 2bhk flat jointly in my mothers name and my self which will be ready for possession in 2016 june, Can i claim IT benefits on the home loan taken for the interest, i am planing to rent my old house and move to the flat. Kindly advice.
Regards,
Mano
I am a salaried person. My contribution to PPF is 2 Lakh, LIC 48000/- , Home loan interest and capital Rs 75000/-, 80D 15000/-, property tax 22000/- .
I pay for my son’s education annually Rs 3 lakh.
My tax per month is about 45000/- thats about Rs 5.25/- lakh from my salary.
Kindly advise how to invest to saxe on taxes.
( gift to wife, PPF for wife/son, gift to parents)
Sir/mam,
How can i gift money to my wife/son or how i can save tax with my wife/son.
i m a salaried employee.
Hi!,
My mother is the sole owner of a vacant land and residential building.
Can well sell the property and pass on the amount to me or my wife without attracting any tax liability to my mother herself, myself or my wife at the same time avail long term capital gains (20 years old property).
She is a senior citizen below 80.
If the above is not tax free, is there any other means.
Thanks & Regards,
Vicky.
Dear sir,
For next 2 years I will be posted abroad from my company and will payed 18 to 20 lacks per annum as consolidated salary(Taxable as per Indian ITR slabs)
kindly let me know the options to save tax other than 1.5 lack under 80c and SD. Also let me know the minimum amount which I have to pay as tax.(I am a single male )
You expert advice will help me to take informed decision.
thanking You
Arun
Hi sir,
I am earning 5,00,000 Per annum and i pay 1,00,000 every year to pay father(not a senior citizen and stay at other City) , will u please give me an information how can i save my tax on this gift amount and what proofs i have to submit to my employer .
Thanks
Dipak rathod
My wife is earning Rs 18000 PM Approx .through tution and other handicraft work and she is getting money in cash only.She is investing in mutual fund through SIP by depositing cash in her saving account and FD (First name is of her name and second name is mine) is there any tax liability come on her or me due to any means.
If i gift some money by transferring through my salary account to my major son who is earning student,what will be tax liability on me or son??How much money i can transferred in a year ? –
If i gift some money by transferring through my salary account to my major son who is earning student,what will be tax liability on me or son??How much money i can transferred in a year ? – See more at: https://taxguru.in/income-tax/tax-planning-save-tax-through-your-family.html#sthash.tmDRFq04.dpuf
dear sir. how much maximum cash i can to my both married dauhters aged 40 & 37 years in assement year 2014-15.how many Rs.stamp i have to purchase for each one to 20 lacs gift by A\C PAYEE cheque SEPARATELY.
If i gift some money by transferring through my salary account to my major son who is earning student,what will be tax liability on me or son??How much money i can transferred in a year ?
I sold my flat and kept the amount in saving account can I remove some part of it for personal use? I already booked a flat which is under construction. .
Sir,
If Brother gifts money (through cheque) to sister to help her in purchasing a house.
And Sister having no other income other than FD interest..
1) Which ITR is applicable to sister.
2)Where it is required to be mentioned about gift during return file of sister in ITR form.
Sir i want your advice in my cases.
1. My annual taxable in come is 10,00,000 and
my mother is 78 years old has no income. I ham giveing her 15000 pm in cash for her expense. Can this be deducted from my taxable income?
if my total salary should be treated as Rs 820000 then where to reflect these 180000 and what documentry proof is required in this regard for filing the Tax Return?
2. I have gifted a Bike( Rs. 148000) to my son of 21 yrs age. Can this be deducted from my taxable income?where to show it in IT return form?
i am going to sell my fathers property and i will be getting cash worth 40 lakhs, should i collect the maney as dd
in case of the liquid cash should i put them as fixed dposit in sbi.
20 lacks in one bank ie sbi ant the other in another bank.i have pan card.
how much money will be deducted as tax,
how much will the interest money i will get
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