Savings Account Suggestion
- 2047
- 38
-
- Last Comment
In order to come in lower income tax slab for this financial year, I want to open a savings account in my mother's name and I will transfer money from my account to her and invest in form of Fixed deposits etc. Please tell me suitable bank that offers Zero balance account as well as gives good interest rates on FD. Scenario is like if I invest from my account then its interest will add to my annual income and i will come in higher slab, thatswhy want to invest from mother's account.
Thanks in advance !
- Sort By
Ah this is so pure. Calling someone's mother aunty when talking about them is quintessentially Indian. Love it.
Au small finance bank, zero balance digital account. Fd rates are also better. Much safer than other small finance banks. BTW, Upto 5 lakh is anyway insured in any rbi licensed banks.
What about incoming calls for credit cards, etc. Looking for a bank which will provide zero balance account but won't bother for other financial products.
Kotak 811. Free virtual debit card. Physical card can be availed @ 299 p.a.
Interest rates are par with major banks.
Upi can be setup with virtual card as well?
Since you are doing this for tax reasons, you should also know, it is possible the IT dept might club the interest income with yours as well.
Don't know if this will work but have your mother file IT for next year and declare the amount you deposit in her account as a gift from you.
Gift between father /mother -son/daughter is tax free. Tax filing for his mother is not required if it is less than 2.5 lakh (not sure about the amount). We common people are feeling scared for no reason, see what businessman do they open business in all family member name and evade tax like crazy.IT department i think cant club with his income as he has already gifted the money to his mother so technically it is not his money anymore..
If you don't mind me asking, how much are you planning to give to your mother? Just wondering.
Idea: Go with AU bank, online zero balance and you will get rupay platinum debit card. within few months they will offer credit card, just accept it.
then try cred mint which offers upto 10.5% interest in addition to regular term deposits in AU and as per risk profile.
Note: DICGC not applicable for NBFCs like CRED (Liquiloans NBFC) and for banks it's upto 5L.
Since you are doing this for tax reasons, you should also know, it is possible the IT dept might club the interest income with yours as well.
Don't know if this will work but have your mother file IT for next year and declare the amount you deposit in her account as a gift from you.
Gift between father /mother -son/daughter is tax free. Tax filing for his mother is not required if it is less than 2.5 lakh (not sure about the amount). We common people are feeling scared for no reason, see what businessman do they open business in all family member name and evade tax like crazy.IT department i think cant club with his income as he has already gifted the money to his mother so technically it is not his money anymore..
reason?
Au is a growing brand with a good reputation. Only small finance banks with good reputation I can think of are Au, Utkarsh and Equitas.
Fincare and unity sound a little shady to me. Fincare because my friend once had a hard time doing a upi transaction I had to physically go down to a store to pay.
Unity for no reason. Everything else can't bring myself to trust them.
Also, this is being done for purely tax reasons so if the money is less than 2.5 lakhs, even if it earns 10% interest the tax that would be paid on it, is not that much. Clearly this is for a significant amount I assumed, that's why I asked his mother to file it as a gift to declare it once and for all.
It is TRUE, big businessmen and rich people pull shameless stunts and get away with it. But the govt always comes for the common man trying to save a rupee. Also business people(small ones as well) and shady people are not under IT dept's purview, the salaried class and their small time savings is what feeds the govts coffers and ultimately runs the country.
People will start businesses in family members names, buy properties, collect rent in lakhs, loan money at sky high interest and still report them as people having no income and collect all the relief subsidies from govt schemes and every benefit. That's how it is.
This is just from the limited knowledge i have. You are clearly the expert, hope I didn't offend you. I am a big fan @arko1983650, ye of enviable portfolio.
income below 5 lakh is anyway not taxable but you have to file return. problem is in case of spouse they can still club the income but not in father/mother name. as he or his wife is technically one entity in income tax but his mother is a different entity. If he is thinking of fd then crossing 2.5 lakh in interest income is tough. As i have invested 50 lakh in rec bond for relief in capital gain and interest there is 2.5 lakh.
read all previous replies . 1-1.5 lakh will not cause any issue from IT department