Hi,
Can a wife transfer a sum of 25 lacs to his husband accounts to open an fixed deposit on his own name.
what will be the tax implication?
Thanks
Anupam
KPPM and Associates
(Chartered Accountant)
(62 Points)
Replied 08 March 2016
Hi Anupam,
Any sum received from a relative as gift is exempt from taxation [Sec.56(2)], and hence there's no tax implication on the transaction of gift itself.
However, please note that the income arising from the FD created out of such gift i.e. the interest on FD, shall be taxable as income from other source subject to clubbing provisions, whereby such income shall be clubbed in the hands of the wife. [Sec. 64]
Hope this was of help.
Bharat Manihar
Anupam
(Finance Professional)
(61 Points)
Replied 08 March 2016
Thanks for your quick respose.
what if the person on who's name the FD's are open are already a tax payer
CA PRATIK DHRUVE
(CHARTERED ACCOUNTANT)
(634 Points)
Replied 08 March 2016