- If I transfer my salary to my mother’s account, if there a limit beyond which it will be taxable?.
- Do I have to declare same in my mother’s tax filing?
Hey @Vaibhav_Gupta,
No, there’s no such limit. Moreover, if your mother is a senior citizen, it is not mandatory for her to file an ITR if her income is below the basic exemption limit which is ₹3L for senior citizens.
If the amount is more than this, she can declare it as exempt income and file her ITR.
Hi Surbhi
Thanks a lot for your prompt response.
Do I have to declare the amount transferred as Income in my mother’s ITR as earnings? I am assuming the 3L earnings mentioned above did not include any amount transferred from my account
Hey @Vaibhav_Gupta,
Any amount that you transfer will be considered income for your mother. If the amount exceeds ₹3L for the year (including any other sources of income that she has), ITR filing becomes mandatory. However, no taxes need to be paid on such income.
clarification required:
Pls specify if you receive salary first in your bank ( you are the employee) and then transfer the funds to her bank account? In such case it is not taxable. There is also no need to file her tax Return either.
scenario 2 - If your mother will receive salary from you ( effectively, she will be your employee and rendering services to your business purposes only) . In such case response by Ms Surbhi’s is valid. Hence pls clarify.
Here transfer of funds is considered as Gift and there is no tax also since it is transferred between the family right?
This is no where considered income right?
Hey @Gowtham,
Yes, gifts to relatives are exempted from taxes and these funds will not be added to the receiver’s taxable income. However, such amount needs to be reported in the ITR under schedule ‘Exempt Income’.
My case is I receive salary first in my bank ( I are the employee) and then transfer the funds to her bank account?
In such case do i need to declare this in my mothers ITR and if so in what section ?