1

Details:

  • I am based out of India.
  • I have already paid TDS on my salary and have also filed by tax-return for the same.
  • Now, I will transfer some part of this money to my dad's account.
  • I will also create a gift deed for the same to keep things legal.
  • My father; who is a retired gov officer and a pensioner now; will create a bank fixed deposit of this money
  • My father will also pay taxes on the interest that he will receive on this bank deposit
2

Is it legal if I transfer money to my retired pensioner father who will create FD (fixed deposit) out of it?

Yes it is perfectly legal. Assuming both you and your dad are resident Indians for tax purposes.

Now, I will transfer some part of this money to my dad's account. I will also create a gift deed for the same to keep things legal.

You can gift unlimited amount to your dad and vice versa.

My father; who is a retired gov officer and a pensioner now; will create a bank fixed deposit of this money

You father is free to do whatever is appropriate with the funds, spend, buy a property, invest in shares or including investing in FD's

My father will also pay taxes on the interest that he will receive on this bank deposit

Yes that should be done.

Note: If you do the same with your wife or kids; the rules are slightly different.

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