Cash gift
This query is : Resolved
rohit choudhary
(Querist)
22 August 2012
cash gift of 10 lakh given to spouse.whether there is any provision of income tax applicable on it.
CA VISHNU GAVKARE
(Expert)
23 August 2012
Gift from Relative is Exempt.
K Srinivas, CMA CS
(Expert)
23 August 2012
Gifts given to relatives are exempt. But, any income that arises out of such income will be taxable in the person who transferred such gifts without any consideration.
e.g: If wife invests Rs.10lacs given as a gift by her husband in a FD, interest on such FD will be taxable in Husband's hands since he has transferred such sum without any consideration
e.g: If wife invests Rs.10lacs given as a gift by her husband in a FD, interest on such FD will be taxable in Husband's hands since he has transferred such sum without any consideration
K Srinivas, CMA CS
(Expert)
23 August 2012
However, the situation i mentioned can be avoided by giving a gift to wife and registering the same via a gift deed.
For more personalized advice, contact a tax professional
For more personalized advice, contact a tax professional
CA VISHNU GAVKARE
(Expert)
23 August 2012
Dear Srinivas,
Clubbing provisions to be more specific sec 64 (1)(iv) is applicable if transfer is without adequate consideration. Natural love is not taken as consideration hence even if deed is registered it will be clubbed in the hands of transferor
Clubbing provisions to be more specific sec 64 (1)(iv) is applicable if transfer is without adequate consideration. Natural love is not taken as consideration hence even if deed is registered it will be clubbed in the hands of transferor
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K Srinivas, CMA CS
(Expert)
23 August 2012
Oh is it? Thanks for the clarification sir. :-)
In this case, what else can we do to avoid taxability? Will it be wise if the husband transfers the money as a loan (with interest) -> wife invests in FD -> pays a nominal amount as interest to her husband?
In this case, what else can we do to avoid taxability? Will it be wise if the husband transfers the money as a loan (with interest) -> wife invests in FD -> pays a nominal amount as interest to her husband?
CA VISHNU GAVKARE
(Expert)
23 August 2012
you can show it as loan but not in cash because 269ss and 269t will be attracted in that case.
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