Pin money
This query is : Resolved
Milan Gupta
(Querist)
20 April 2013
What is pin money?
is pin money taxable?
is pin money taxable?
20 April 2013
Pin Money means "A reasonable allowance given to the wife by her husband for her dress and usual household expenses"
Pin Money is not Taxable.
u/s 64(1) (iv) of the Income Tax Act-1961, any income arising from assets transferred to spouse without adequate consideration is taxable in the hands of the transferor and not in the hands of transferee. However, if asset is acquired by the spouse out of pin money (i.e., a reasonable allowance given to the wife by her husband for her dress and usual household expenses) then the income from such assets cannot be clubbed with the income of her husband. [R.B.N.J Naidu Vs CIT (1956) 29 ITR 194 (Nag) and R.Dalmia Vs. CIT (1982) 133 ITR 169 (Delhi).]
Pin Money is not Taxable.
u/s 64(1) (iv) of the Income Tax Act-1961, any income arising from assets transferred to spouse without adequate consideration is taxable in the hands of the transferor and not in the hands of transferee. However, if asset is acquired by the spouse out of pin money (i.e., a reasonable allowance given to the wife by her husband for her dress and usual household expenses) then the income from such assets cannot be clubbed with the income of her husband. [R.B.N.J Naidu Vs CIT (1956) 29 ITR 194 (Nag) and R.Dalmia Vs. CIT (1982) 133 ITR 169 (Delhi).]
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Milan Gupta
(Querist)
21 April 2013
If she invest in fd and get interest then?
21 April 2013
Than Interest on FD will be taxable in the hands of Wife.
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