Gift cash to working/earning wife.

This query is : Resolved

Satish Mehra (Querist)
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05 June 2023 Sir, please guide if a husband bank transfers some amount to an earning wife. The FD is done with that money.
Will the interest income be clubbed with the husband?
And what if the husband is nonworking.
Thanks in Advance

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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05 June 2023 Yes, the interest income will be clubbed with husband's income, whether husband is working or not.

Satish Mehra

Satish Mehra (Querist)
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05 June 2023 Even if the wife is working and filing ITR, What if I show it as a loan to wife

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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05 June 2023 When wife earns interest income, from the loan amount of her husband, the interest income is taxed in the hands of either of the person whose income is more.

Satish Mehra

Satish Mehra (Querist)
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05 June 2023 thank you sir, is there any way to avoid clubbing, as the money is already being transfered

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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05 June 2023 As per the process accepted, there is no other alternative.
There are different ways for that, for that get some local professional help.

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