Who is liable to pay tax on interest earned from FD, which was created by wife using PIN money received from Husband?
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Clubbing of pin money
Replies (11)
Hi
As per Sec 64(1)(iv) this income will be taxed in the hands of transferor. In this case husband.
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But in the case of " R.B.N.J Naidu Vs CIT (1956) 29 ITR 194 (Nag) and R.Dalmia Vs. CIT (1982) 133 ITR 169 (Delhi) " , it says income from investment out of pin money cannot be clubbed.
100% i can say clubbing provisions wont attract here.
1. Income from Investment out of PIN money will be taxable in the hands of Wife
Clubbing provision does not attract to income from investment out of pin money
Pin money received by wife from her husband is not treated as an income in the hands of wife & so if she saves from Pin money & invests the same, the income from Investment will be taxed in the hands of wife & no clubbing provisions will apply here.
not taxable...no clubbing in hnd of husband..but pin mony must b reasonable amt...inv is resonable amt not tooo much huge amt
ncome from Investment out of PIN money will not attact clubbing provisions.
Is there any limit for the amount of PIN money investment?
The concept of pin money is that of a personal allowance hence any investment done for it would be the income of the wife only.
However the assessing officer may take judgement regarding the amount of such investment and classify it accordingly.
In the hands of wife.
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