issue relating to gift

[BIBIN VARKEY]

A person can transfer a Fixed deposit of Rs.25,00,000/- to his daughter on the occassion of her marriage. (1) Whether it is taxable/ not (2) Whether intrest on fixed deposit is chargaable to tax or (3) whether if interest income is clbbed with her father's income?

AI Summary

Transfer of Fixed Deposit to Daughter on Marriage: Not Taxable, Interest Earned is Taxable for Daughter A discussion on the tax implications of transferring a fixed deposit of Rs. 25,00,000 to a daughter on her marriage concluded that the transfer itself is not taxable. However, the interest earned on the fixed deposit is taxable in the daughter's hands and not clubbed with the father's income. The transfer should not be revocable, and since the daughter is married, clubbing provisions do not apply. All three replies from different contributors agreed on these points.