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Income tax file for housewife

Vishal (engineer) (29 Points)

21 July 2014

Hi,

I am a newbie to the income tax rules so need expert advise.

I have transferred RS 5 lakh to my wife account. She is house wife and no source of income. She has given the same amount to 3rd party and earned some interest amount. 3rd party has deducted TDS from the interest. So we need to file Income tax to get the TDS back. My questions are:

How do I file the tax without form 16? Do I need to fill ITR 1 or ITR2?
How do I show the initial 5 lakh amount on her name as she does not have any income. Will there be any problem on showing the 5lakh income to her? or it can be shown as gift from my side?

Appreciate any help on this.

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2 Replies

Rohit Tulshyan (RTProfessionals) (333 Points)
Replied 22 July 2014

So many questions in one. :)

Ans. to Q1:- a) You can file return online without form 16A (if its TDS on other than Salary). Form 16 is for Salary TDS.

b) You can File ITR-1 if she has only interest income in order to get refund.

Q2. Their are various scenarios in this context.

1. I hope you have transferred the same to through a valid banking channel i.e. cheque or netbanking. You should show this to her as unsecured loans (if you have not gifted this amount to her).

2. No, how will you show the same as her income. If you giving her as gift than It will be received as gift which is tax free in her hands since she is your wife. But, If its a gift, than her income from those 5 lacs will be taxable and clubbed in your hands. i.e. if you have gifted her those 5 lacs than this interest will be taxed in your hands.

I suggest you to seek professional help by a near by tax consultant.

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Vishal (engineer) (29 Points)
Replied 22 July 2014

Thanks a lot Rohit for your input. asked many questions to clarify everything in 1 shot. :)

few more quick questions on my previous 2nd ques, appreciate your help

1. i transferred 5 lakh through net banking only to my wife's account. You are suggesting that i should not show this amt as gift otherwise her income on this gift would be taxable under my name. Ques: if she has received as gift then shld nt it be taxable to her?

2. Can you pls share more info on Unsecured loan term you have mentioned?

Thanks again for your help.

Originally posted by : Rohit Tulshyan
	So many questions in one. :) Ans. to Q1:- a) You can file return online without form 16A (if its TDS on other than Salary). Form 16 is for Salary TDS. b) You can File ITR-1 if she has only interest income in order to get refund. Q2. Their are various scenarios in this context. 1. I hope you have transferred the same to through a valid banking channel i.e. cheque or netbanking. You should show this to her as unsecured loans (if you have not gifted this amount to her). 2. No, how will you show the same as her income. If you giving her as gift than It will be received as gift which is tax free in her hands since she is your wife. But, If its a gift, than her income from those 5 lacs will be taxable and clubbed in your hands. i.e. if you have gifted her those 5 lacs than this interest will be taxed in your hands. I suggest you to seek professional help by a near by tax consultant.