Who pays Capital gains tax on money invested from mother's account but transferred by me?

[aakash1234]

I am planning to make some investment from my mother's Kuvera account. So planning to send part of my salary to her account.
Now, for LTCG and STCG on investment from her account, who needs to pay tax? Is it me because I only gifted that money to my mother or it will be taxable as per her tax slab?
Note: My mother is a housewife. I am doing this to save taxes + to have some money in her name.

 

[The INSANE Trader]

I am planning to make some investment from my mother's Kuvera account. So planning to send part of my salary to her account.
Now, for LTCG and STCG on investment from her account, who needs to pay tax? Is it me because I only gifted that money to my mother or it will be taxable as per her tax slab?
Note: My mother is a housewife. I am doing this to save taxes + to have some money in her name.

In India, there's no gift tax levied on the recipient of a gift. So, if you're transferring money to your mother's Kuvera account as a gift, she won't have to pay any tax on the gifted amount.
Long-Term Capital Gains (LTCG): If your mother invests the gifted money and earns LTCG by selling the investments after holding them for more than three years (such as equity mutual funds), she will be liable to pay tax on the LTCG.
Short-Term Capital Gains (STCG): If she sells the investments within three years of purchase, any gains will be considered STCG. For equity investments, STCG is taxed at 15%.
But it's always advisable to consult with a tax advisor who can provide personalized advice based on your specific circumstances and goals.

 

[CA Sunil Chahal]

I am planning to make some investment from my mother's Kuvera account. So planning to send part of my salary to her account.
Now, for LTCG and STCG on investment from her account, who needs to pay tax? Is it me because I only gifted that money to my mother or it will be taxable as per her tax slab?
Note: My mother is a housewife. I am doing this to save taxes + to have some money in her name.

You have to pay tax on your salary if it comes into slab rate (no deduction of amount transfer to your mother account), Amount you transfer to your mother account have to show as gift in her ITR and there will be no tax on Gift. If you earn any long term or short term capital gain then your mother have to pay tax on it. IN case of long term capital gain there is no tax on upto Rs1,000,00.

 

[aakash1234]

You have to pay tax on your salary if it comes into slab rate (no deduction of amount transfer to your mother account), Amount you transfer to your mother account have to show as gift in her ITR and there will be no tax on Gift. If you earn any long term or short term capital gain then your mother have to pay tax on it. IN case of long term capital gain there is no tax on upto Rs1,000,00.

Thanks Sunil ji for the response.
Do I need to get some document like gift deed or something for showing its a gift to my mother?
Or simply filing ITR of my mother and showing the amount I transferred as exempt income will be enough?
Note: I am planning to send 10 lakhs+ per year to my mother's account.

 

[CA Sunil Chahal]

No gift deed is optional When filing your mother’s ITR, You can simply show it in exempt income as gift in your mother's ITR
but ensure that you have proper records of the transaction, including bank statements or transfer details. You can send any amount to your mother as gift whether it is 10 lakh or 20 lakhs doesn't matter.
Disclaimer: The information provided here regarding your tax issue is for informational purposes only and should not be considered as legal advice. My suggestions are based on my understanding.

 

[aakash1234]

No gift deed is optional When filing your mother’s ITR, You can simply show it in exempt income as gift in your mother's ITR
but ensure that you have proper records of the transaction, including bank statements or transfer details. You can send any amount to your mother as gift whether it is 10 lakh or 20 lakhs doesn't matter.
Disclaimer: The information provided here regarding your tax issue is for informational purposes only and should not be considered as legal advice. My suggestions are based on my understanding.

Thanks for the info.
I checked with one local CA as well and he said the same. Wanted to double check here in the community as well.
Thanks for your reply sir, it is really helpful.