No tax on gift to grandson

I am a retiree of the HP Government. I want to gift a sum of Rs 1 lakh to major son of my daughter for investment in Kisan Vikas Patras.  Please advise on the following points:

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a) Whether I can do so within the scope of the Income-tax Act, and if I can, kindly describe the procedure.

b) If I cannot, what is the other way of giving the said sum to the major son of my daughter without any tax liability on both? — KS Thakur

You can make a gift to your grandson (daughter’s major son) without attracting any tax on the gift so made.  The gift should be made by an account-payee cheque. A simple letter for making a gift to your grandson giving particulars of the cheque, the bank on which it is drawn, your address and PAN, would suffice. A letter should be obtained from your grandson accepting the gift which should give his complete address and Permanent Account Number.  

I am a government pensioner aged 84 years. I have been filing my income-tax return manually to maintain continuity, my income being less than Rs 5 lakh. For the financial year 2016-17, my taxable income is likely to exceed Rs 5 lakh. Please advise whether I can still file return manually (instead of e-filing) in the following situations:

a) When I have to pay income-tax

b) If I have to claim refund due to excess tax deducted at source by the bank on my fixed deposits — Ram Gopal

Your queries are replied hereunder:

a) You can pay the amount of tax on your total income at the time of filing your tax return without attracting any interest on such payment.

b) The return will have to be filed online.  In case tax deducted at source matches with the particulars given in form 26AS which can be checked online, the refund, if any, on excess deduction of tax shall be remitted to your bank account directly.

I am a senior citizen and my date of birth is 19-05-1938. My query is whether a sum of Rs 1,50,000 invested in Senior Citizen Savings Scheme, 2004 is eligible for rebate under Section 80C of the Income-tax Act, 1961. My annual income for the financial year 2016-17 is expected to be around Rs 8,00,000 (pension + bank interest). If the reply is positive then I should save income-tax amounting to Rs 30,000 upon investment of Rs 1,50,000 (20%). If the reply is negative, then please advise where should I invest the said amount to save income-tax.

The amount deposited in an account under Senior Citizens Savings Scheme Rules 2004 is allowable as deduction under Section 80C of the Income-tax Act, 1961 (The Act) and therefore you will be able to claim such deduction from your total income within the permissible limit of Rs 1,50,000.