what will be tax liability of my family members?

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what will be tax liability of my family members?

I am a govt servant in 30% tax slab.My wife is house wife.My son is 18 years old and is student.My daughter is in service in private sector.I deposits in my son and my wife’S PPF account every year from my savings after paying tax. I also deposits amount in RD account of my daughter and my wife every month from my income.my daughter pay tax and files ITR.My wife also files ITR and my son will file his first ITR this year as he has attained the age of 18 year in this March. what are tax liabilities of my family members?

Profile photo of Dr.Prabhat Kiran khatri Asked By: Dr.Prabhat Kiran khatri 1 replies 1 helpful answers Last Updated: 10 months, 2 weeks ago
  • I am a govt servant in 30% tax slab.My wife is house wife.My son is 18 years old and is student.My daughter is in service in private sector.I deposits in my son and my wife’S PPF account every year from my savings after paying tax. I also deposits amount in RD account of my daughter and my wife every month from my income.my daughter pay tax and files ITR.My wife also files ITR and my son will file his first ITR this year as he has attained the age of 18 year in this March. what are tax liabilities of my family members?

  • Profile photo of Chetan ChandakChetan Chandak
    Moderator

    We will break it in 3 parts:

    For wife: if you deposit something in her name and if she derives any income out of such gift then that income is clubbed in your hands. In her case PPF interest is exempt so there is no tax implication on it for either of you but the RD interest needs to be added to your taxable income and you should pay taxes on it.

    For Son: Any income (except the one earned by him out of his own skills) earned by a minor is generally taxable in the hands of a parent who is earning higher income. So any income earned in the name of your son till he became major should be added to your income and you should pay the taxes. Now as he became a major you should immediately link his PAN to all the investment in his name. And going forward he should file his own return and pay the due taxes on all the income earned in his name.

    For Daughter: Assuming that she is major any income derived by her in her own name should be included in her tax return.

    There will not be any tax on the gifts made by you to any of your family members.

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