Can I move money from my savings account to my mother's account on April 1st (beginning of the financial year in India) and move the money back (original amount, not including interest gained) to my account on March 31st (end of the financial year) in order to save tax on interest from the savings bank.

In India, interest from savings, if above 10K attracts income based on the applicable tax slab. If I park the savings in a family member's account and move the money back, the interest they received shouldn't be taxed (assuming no other income and interest gained is less than the lowest tax slab) right?

I want to know if its legal in india

  • 1
    Money in your mother's account is... your mother's money, not yours.
    – RonJohn
    Feb 7, 2021 at 6:28
  • 1
    So if your mother wants to spend it, she can spend it. In the sad event that she dies, her husband and your siblings will likely inherit most of the money.
    – gnasher729
    Feb 7, 2021 at 10:37

2 Answers 2


It sounds like you are considering lying about who really owns the money and earns the interest. If you intend to take the money back, then putting it in her name would not be an honest representation, and would be generally considered tax fraud [though I am not familiar if whether India uses a specific technical definition for that term, it would apply in most countries I am familiar with].

Don't commit tax fraud.


I will strongly advise against any sort of tax evasion. The penalties for tax evasion are huge and when legal cost for defending and representing you would get added, the net result would be negative.

However, you may do needful tax planning little diligently. As a part of the responsibility as a son, you may start giving some amount every month to your Mother for enabling her meet her day to day expenses. Apart you may start giving her some amount as gift on occasions as her birthday and so on. She can build her own capital and start investing. Interest on such income will be taxable in her hands. You may like to understand consequences of tax evasion here https://www.itrtoday.com/tax-evasion-in-india-and-punishments-and-penalties-related-to-it-know-more-about-it/

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