A Husband transfers Rs.5 lacs to his wife. The wife makes a FD of the same. Will this be clubbed in husband's income or will be taxable under Wife's name?
Devendra
(Chartered Accountant)
(4775 Points)
Replied 01 August 2013
According to Section 64(1) the income of the wife / husband can be clubbed with the income of spouse, any income from assets transferred directly or indirectly by the spouse, otherwise than for an adequate consideration or in connection with an agreement to live apart. Such assets may be immovable property as well as immovable property like cash, shares, debentures.
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