How to Gift Money to Parents in India?
How gifting money to parents helps in tax saving in India. Is there any special exemption for parents in gift tax in India's rules and exemptions under Income Tax Act 1961?
Let's think that your parents are senior citizens and have zero income. You can easily present all all levels of money to buying high-return instruments particularly senior citizen's discounts system.
Because senior citizens do not have to invest any income tax for the annual money around Rs 2.5 lakh, the interest earning cannot get taxable until they exceeds your exemption limitation. This means that you can easily invest as much as every one of ones senior mothers without any source of income if the annual interest or even get back looks 10%.
When your mothers tend to be on at 80 years, these are generally entitled at tax-release income as much as Rs 5 lakhs annually to "very senior citizen" group. You are able to spend using every one of any "extremely elder citizen" moms and dads at tools that provide 10% annual go back and steer clear of all taxman at attract earnings up to Rs 10 lakhs made by both of your parents combined.
For more detail on Gift Tax in India, you can download pdf file from the below link. Thanks!