05 March 2008
Mr. X made a gift of Rs. 300000 to his daughter in law .she invested that amount in p.o. mis . Whether clubbing provision is applicable? Deduction is available u/s 80c?wheather she can jointly share the income with her husband?
05 March 2008
CLUBBING OF INCOME SHALL BE APPLICABLE BECAUSE THE SOURCE OF INCOME HAS NOT CHANGED. NO DEDUCTION U/S 80 C IS AVAILABLE TO POST OFFICE MIS .SINCE THE GIFT WAS MADE TO HER SHE CANNOT JOINTLY SHARE THAT INCOME WITH HER HUSBAND AND IF SHARE IT SHALL BE TAXABLE IN HER HAND ONLY
05 March 2008
UNDER SEC 64 (1) (VI)/(VIII) OF IT ACT, INCOME FROM ASSETS TRANSFERRED TO SON'S WIFE AFTER 31 ST MAY 1973/01-06-1973 IS DEEMED AS INCOME OF TRANSFEROR AND CLUBBING PROVISIONS APPLY. ONLY GIFT TAX IS AVOIDABLE IF REQUIRED CONDITIONS SATISFIED. AS FOR SHARING OF INCOME WITH HUSBAND , NO LAW ON EARTH CAN STOP. BUT 80 C BENEFIT NOT AVAILABLE TO POST OFFICE MONTHLY INCOME . 80 C BENEFIT IN THE LATEST BUDGET 08-09 WAS EXTENDED TO POST OFFICE TIME DEPOSITS(5YEARS) AND SENIOR CITIZEN DEPOSITS. R.V.RAO
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