Maximum money transfer limit to parents

Querist : Anonymous (Querist) 02 May 2018 This query is : Resolved
Want to transfer my money (taxed income) to my parents for Fixed deposit on their name, to get monthly income for them
I see some says 1 lacs, some say no limit could you please help on what law exactly says?

Questions:-

1) what is the maximum limit per year they can get as a gift from their kids? OR is it unlimited?

2) Do they need to declare this gifted amount received from their kids on their income tax returns at the time of filing income tax return?
if so what is the tax slab?

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kavksatyanarayana (Expert) 02 May 2018
You can transfer money to your parents without limit. if you are paying Tax for your income, your parents will get exemption from IT.

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R.Ramachandran (Expert) 03 May 2018
1. There is no limit in remitting the amount to the parents, from out of your taxed money.
2. The parents need not pay any income tax on the amount received from you. Nor are they liable to show/declare in their I.T. Return.
3. However, whatever interest that they would be earning on the FDs that they take, will be taxable. Depending upon their taxable income (whether made up of interest alone, or with some other income like pension, rent receipt etc.) they are liable to file the income tax return.

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Querist : Anonymous (Querist) 03 May 2018
thanks for your reply

Kumar Doab (Expert) 03 May 2018
You and your parents may keep record of transfer...for future reference...
Pls post with your ID and you can get many replies.
Your ID does not mean your email id or phone number and don’t post these also.

T. Kalaiselvan, Advocate (Expert) 03 May 2018
You can transfer any amount as gift to your parents since you are paying income tax.

The revenue augmented from this transfered amount shall be taxable as applicable.in the hands of your parents when their ITR is filed

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