New Delhi, May 10 -- Today is Mother's Day, a day when you should cherish your relationship with your mother and pray for her good health, happiness and prosperity. Keeping this spirit in mind, let us also understand how the tax authorities view the money you send to your mother. What is the tax treatment involved? Also, can any funds you transfer to your mother help you save tax, i.e., reduce your tax liability?

The first point that you must be clear about is that all such transfers are generally tax-free for your mother. Still, they do not reduce your own taxable income. At a fundamental level, the tax-free outcome depends on the transfer's objective and structure. Let us hence look at the transfer of funds to one's mother at a deeper ...