Gift by Son – Tax implications?

Forums Exemptions Gift by Son – Tax implications?

Gift by Son – Tax implications?

My son is abroad and I am a senior citizen having no salary income. I have some interest on my saving which is not enough to run my and my family comprising of wife and mother. Besides I have a home loan. My son sends me the deficit amount every month out of interest earned on his savings in India. What would be tax implications on me and my son?

Profile photo of shekhar pathare Asked By: shekhar 1 replies 0 helpful answers Last Updated: 9 months, 3 weeks ago
  • Profile photo of shekhar pathareshekhar
    Participant

    My son is abroad and I am a senior citizen having no salary income. I have some interest on my saving which is not enough to run my and my family comprising of wife and mother. Besides I have a home loan. My son sends me the deficit amount every month out of interest earned on his savings in India. What would be tax implications on me and my son?

  • Profile photo of Chetan ChandakChetan Chandak
    Moderator

    Your son sending you money has no tax implication on either of you as it’s a gift from covered relative. Beside this as you have housing loan and you are paying principal and interest thereon, you can claim the housing loan interest deduction on the interest amount. If you have other taxable income it can help you reducing the tax liability on other income. In case if you do not fall in taxable bracket still it is recommended that you should file the return showing the HP loss so that you can carry forward and set-of the same against the taxable rent (if any) for future.
    Please note that the any interest earned by your son on his deposits in India is taxable in his own hand bank must be deductinfg the taxes on it. If his income for the year does not exceed Rs. 2.5 lakhs for the year he can claim the refund for this tds by filing as NR. Also remember that this interest may be taxable in the foreign country based on his residential status there.

You must be signed in to reply to this question.