Question ID :
Taxation of transfer of balance funds raised through crowd funding for covid emergency to his family
A fundraising was started for medical treatment of Mr.X, on a platform named Milaap (www.milaap.org). Milap Social Ventures India Pvt. Ltd. is registered as a private limited company to help raise crowdfunding for emergencies and social cause.
He was advised lung transplant, due to post COVID complications. Unfortunately, he passed away during the fundraising process.
As he is survived by his wife, and a 2-year old son, we're keen on giving out the money to the family (to be used for his son's education).
We seek your guidance on following questions:
1. What is the legal approach to transfer this money to his family, as the initial cause of fundraiser was medical treatment? (Milaap allows for the cause to be changed to a memorial fund, informing all donors of the present situation. But will anything additional need to be done at our end?)
2. How do we minimize the tax deductions applicable in this case? What will be the minimum tax deduction, given that we're able to materialize the best possible option?
3. Should this be transferred in the name of his 2-year old son or his working wife (30% income tax slab)?
4. What will the process look like, and what will be the documentation support required ?
ASHOK DIXITHA JAIN
Jun 9 2021 12:00AM