Giving money by cheque

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Siddharth (Querist)
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07 September 2015 Hi, "A" buys a house from "B" for Rs 80 lacs and pays the amount by cheque. At the same time A pays Rs 20 lacs to B's wife who is a housewife through cheque. 80 lacs is for the house and stamp duty is paid by A on that amount only. What is the consequence on A, B and B's wife coz of that 20 lacs cheque given by A to B's wife?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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07 September 2015 The 20 lacs will treated as income from other sources and taxed at applicable slab rates in the hands of B's wife.

Amol S Joglekar

Amol S Joglekar (Expert)
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07 September 2015 Assuming A and B OR A and B's wife are NOT relative as contemplated in sec 56(2), AND also assuming that it is NOT a loan given to B's wife, 20 lac shall be deemed to be income of B's wife; which in turn is liable for clubbing u/s 64

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