How to transfer money ?
This query is : Resolved
29 September 2013
Respected seniors and my dear fellow mates,
I have a query.
A husband having a pension income (tax bracket 10%) wants to give his wife Rs. 10, 00,000 /- (Ten lakh rupees). Wife is a home maker and non-filer of income tax.
Now how the husband can give the amount to wife so that to avoid clubbing of income from the income earned from that money.
I understand some points:
1. That if the wife put the money in fixed deposit then the interest so earned will be clubbed with the husband’s income. So, cannot do that.
2. Again, I think loan to wife is not valid as he doesn’t have the license to do that, i.e.against RBI provisions and charging interest for the same will contravene the provisions of PML Act, 2002. Though, vide argument, if it is valid, please quote the section of the I.T.Act, 1961 or cite a case history.
3. Jewellery, the wife does not have much so as to fulfill the term of “adequate consideration” which she could have given to her husband.
4. Only Left is PPF. If the wife puts the money in PPF then that is the only way, I think, to save the full interest so earned from that money and it wont be clubbed.
Any other way by which the money can be transferred by the husband to the wife and she can invest by which the income which will be derived will not be clubbed with the husband’s income?
Any other valuable tips. Please comment. Need your advice and suggestions asap. And correct me if I am wrong with the above mentioned points.
Thanking you
Somsuvra Mukherjee
I have a query.
A husband having a pension income (tax bracket 10%) wants to give his wife Rs. 10, 00,000 /- (Ten lakh rupees). Wife is a home maker and non-filer of income tax.
Now how the husband can give the amount to wife so that to avoid clubbing of income from the income earned from that money.
I understand some points:
1. That if the wife put the money in fixed deposit then the interest so earned will be clubbed with the husband’s income. So, cannot do that.
2. Again, I think loan to wife is not valid as he doesn’t have the license to do that, i.e.against RBI provisions and charging interest for the same will contravene the provisions of PML Act, 2002. Though, vide argument, if it is valid, please quote the section of the I.T.Act, 1961 or cite a case history.
3. Jewellery, the wife does not have much so as to fulfill the term of “adequate consideration” which she could have given to her husband.
4. Only Left is PPF. If the wife puts the money in PPF then that is the only way, I think, to save the full interest so earned from that money and it wont be clubbed.
Any other way by which the money can be transferred by the husband to the wife and she can invest by which the income which will be derived will not be clubbed with the husband’s income?
Any other valuable tips. Please comment. Need your advice and suggestions asap. And correct me if I am wrong with the above mentioned points.
Thanking you
Somsuvra Mukherjee
29 September 2013
You can use option 2, u dont need a licence to lend!!
PPF is not the only option. You can invest in equity mutual funds too and hold for more than 1 year. investment in any tax free avenue will take care of clubbing.
PPF is not the only option. You can invest in equity mutual funds too and hold for more than 1 year. investment in any tax free avenue will take care of clubbing.
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