Income Tax

kalpana21sara@gmail.com (Querist) 09 May 2011 This query is : Resolved
I invest regularly in NSC to get a tax deduction under 80C, but add the second name of mother as well who is a dependent on me.
Can i gift the interest earned to my mother and she can show that in her annual income as she doesnt fall under tax bracket?
Is there any separate declaration required for this apart from mentioning this income while filing her income tax return?

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A V Vishal (Expert) 09 May 2011
YES YOU CAN SHOW IT AS A GIFT TO YOUR MOTHER BUT CANNOT CLAIM ANY BENEFITS/EXEMPTIONS/DEDUCTION ON ACCOUNT OF IT, MOREVER, THE ACCRUED INTEREST (WHICH IS RE-INVESTED) ON NSC's IS REFLECTED UNDER INCOME FROM OTHER SOURCES AND ALSO AN ELIGIBLE DEDUCTION U/S.80C (LIMITED TO RS.1.00 LAKH) AND HENCE EXEMPTED FROM TAX.

Guest (Expert) 09 May 2011
You can dispose of your income as you like after you have duly accounted for.

As far as gift to your mother is concerned, no separate declaration is needed by her. Your mother can simply show the income as from other sources giving details of the source and on what account received, i.e., as gift from you, as son.

M/s. Y-not legal services (Expert) 10 May 2011
Yes. Am agree with mr. vishal

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