Suppose i am having income that comes under the scanner of irs now i want to give some amount of money to my mother and make a fixed deposit on her name as she is having a low or nil income will i be charged for the interest from fixed deposit that she is going to receive.
Is It illegal to save tax this way
(2 posts) (2 voices)-
Posted 4 months ago #
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It is considered as illegal tax shelters when you are trying to evade you evade your income from IRS and you can be charged to 75 % of the tax which you underpay plus you might also face the risk of criminal prosecution.If you are trying any thing to hide willingly from them they will take action on it but this doesn't mean you can't give your mother money or deposit money in her name.You can do so and all you have to do is show the income when you have earned it and pay tax on it for the year in which you have earned it.If your mother is the sole beneficiary from that fixed deposit then she will be paying tax for it not you.
Posted 4 months ago #
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