Clubbing of spouse's income
This query is : Resolved
08 March 2025
Refer to the below article on clubbing of spouse's income
https://economictimes.indiatimes.com/wealth/tax/income-from-asset-transferred-to-even-your-daughter-in-law-will-be-clubbed-to-your-income-and-will-be-taxable-in-your-hand-in-this-case-says-income-tax-dept/articleshow/118685554.cms
Can colleagues help explain that if gift to spouse (monetary or otherwise) is not taxable, then how can return from such gift in the form of income be clubbed with the giver's income.
https://economictimes.indiatimes.com/wealth/tax/income-from-asset-transferred-to-even-your-daughter-in-law-will-be-clubbed-to-your-income-and-will-be-taxable-in-your-hand-in-this-case-says-income-tax-dept/articleshow/118685554.cms
Can colleagues help explain that if gift to spouse (monetary or otherwise) is not taxable, then how can return from such gift in the form of income be clubbed with the giver's income.
08 March 2025
https://www.financialexpress.com/money/income-tax-bill-2025-what-is-clubbing-of-income-and-how-will-family-income-be-taxed-now-3757170/
08 March 2025
https://bcom.institute/income-tax-law-and-practice/clubbing-of-incomes-taxation/
08 March 2025
https://www.taxmann.com/post/blog/provisions-of-clubbing-of-income-under-income-tax-act-1961/
08 March 2025
Sir, my query is not addressed by the three articles. Understand there is no gift tax on gift to spouse. I gift cash to spouse. She uses those funds to invest in shares, mutual funds and earns income. Will this income be clubbed? If yes, that is the benefit of tax free cash gift.
08 March 2025
You have not properly understood clubbing, that is why these articles. The money given to spouse is tax free......... no tax over it.
But to misuse the income distribution by donor, ANY INCOME earned over the capital (GIFT) is taxes in the donor's file. If no income income earned by gift receiver over the gifted capital no tax liability.
But to misuse the income distribution by donor, ANY INCOME earned over the capital (GIFT) is taxes in the donor's file. If no income income earned by gift receiver over the gifted capital no tax liability.
04 October 2025
Good luck...
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