Dear Sir / Madam, My father (84 year old) wants to transfer some money to my account. I am 52 year old. I am in 30% tax slab. How much tax this money will attract? Also please guide whether it is correct to make FD in his name and get more interest? He has declared me as nominee for his bank account. How much tax I will need to pay on the money that I will receive when he will not be there? What does law says?

Ans: Dear Amit,

You can absolutely transfer the entire amount of Rs. 20 lakhs from your father's PPF account and Rs. 7.90 lakhs from his FD to your mother's account through RTGS. Since your father was a regular Income Tax payer and had filed all his IT returns up to FY 2021-22, there should be no issues related to the legitimacy of the funds being transferred.

However, to ensure a hassle-free experience with the Income Tax Department in the future, I recommend taking the following steps:

Keep a record of the source of the funds, i.e., the PPF account and FD account details, as well as any supporting documents like your father's death certificate, nominee declaration, and bank statements.
When your mother files her Income Tax return for the relevant financial year, make sure to disclose these amounts as gifts received from you, her son, as gifts received from relatives are exempt from tax. You can provide the details of the source of funds and the reason for the transfer (i.e., inheritance) in the notes section of her return, if applicable.
If your mother earns any interest or income from these amounts, she should include that in her taxable income and pay the applicable taxes.
It would be helpful to consult a tax professional to ensure that all the necessary documentation and disclosures are made properly in both your and your mother's tax returns.
By following these steps, you should be able to avoid any queries or issues from the Income Tax Department regarding the transfer of funds from your account to your mother's account.

I hope this helps.

Take care.

Ans: Hello, the amount will not be taxable

Ans: 01. In absence of information, I suppose the property being sold is a Long Term Capital asset.
02. Please work out Cost of ancestral property, so that you can work out Capital Gain on it, after reducing the same from sale amount of Rs.29.00 lakhs.
03. LTCG will be taxed @12.50% with Indexation or @20.00% with Indexation. You can choose the option, where the LTCG is less.
04. Your father can Gift the amount to both sons without any tax implications. The Gift should be by cheque or online transfer and not in cash. Better if proper document for gift is prepared.
05. Both sons may use the gifted money in the way they like, including re-payment of loans, either housing or other loan.
Most welcome for any further clarifications. Thanks.

Ans: Your questions need some more clarity, for proper response.
Who is running the business ? Is it your father or you ? If it is your father then my reply of today stands final.
If you are running the business, please confirm this & we shall make our suggestion accordingly.
Most welcome for any further clarifications. Thanks.