Dear Sh.Vivek Ji - I am aged 45, unmarried. I am an honest tax payer and have Salary income as main source of income. To avoid double taxation , can I transfer the balance in my Savings account to my senior citizen mother's accounts. I believe, She shall not be taxed upto the limit of Rs 3 Lacs. Request you to suggest any other avenues where I can create a stream of income for my mother with no tax burden. Also kindly let me know how can I avail EEE benefits and earn decent interest.

Ans: No need for investments under 80C as her income is not in the taxable limit.

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: Maternal uncle - Mama; is in the definition of Relative as per Income Tax Act. Any amount received from relative is not an Income in the hands of recipient.

Ans: As per Income tax provisions, if father transfer funds to son as gift; it will not be treated as Income and it is advisable to execute gift deed for the same. Further, for creation of FD in the name of father, payment is required to be done from bank account of father.

With reference to amount received as legal hair, son is required to pay tax on Interest income accrued after the date of death.