tax assessment

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

16 November 2009 i am an employee of psu. my assessment came for scrutiny for the FY2007-08. In that year i got 3 lakh profit from share trading in my account and 2.5 laksh loss from share trading in my wife account(she has seperate pan no. and house wife and never submitted return). Both of these are short term. I did not show any of these in my returns.

Now i must disclose my 3 lakh profit. So can i add my wife's loss to this? Bcoz my wife has no other source of income and its actually my money and my loss and i did it.

please clarify.

Thanks in advance

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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16 November 2009 If the conditions as in section 64(1)(iv) is satisfied, wife's loss can be included in husbands income.
But if the husband declares his as well as wife's income after receipts of notice under section 143(2), penalty provisions under section 271(1)(c) may attract.

hshivakumar

hshivakumar (Expert)
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16 November 2009 you cannot set off your Trading loss your wife trading profit.

Querist : Anonymous

Querist : Anonymous (Querist)

16 November 2009 thanks both of you. But which one is correct.

And chakrapaniji, what are the satisfaction conditions in section 64(1)(iv)? My wife has no income, it was my money (i can prove with statements) and i traded in my wife account. Are these sufficient?

one more doubt, shall i say that i traded in my wife's account or shall i say i gave money to my wife and she traded.

is there any other way so that i can club these to and got penalised for less amount?