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Querist : Anonymous

Querist : Anonymous (Querist)

17 July 2014 ADDITION MADE IN SCRUTINY ASSESSMENT CAN BE CAPTLISED OR NOT ?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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17 July 2014 nopes. For two reasons:

1. it is not an expense

2. it is not giving you any long term benefit.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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17 July 2014 how exp can be capitalised in case of assessment.

Querist : Anonymous

Querist : Anonymous (Querist)

17 July 2014 WIFE GIVEN 2 LAC TO HUSBAND,BUT ITO MADE ADDITION OF THIS AMOUNT IN SCRUTINY .
WHETHER THIS AMOUNT BE CAPITALISED IN HUSBAND
CAPITAL ACCOUNT ?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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17 July 2014 was a loan given to husband?

Querist : Anonymous

Querist : Anonymous (Querist)

17 July 2014 WIFE GIVEN LOAN TO HUSBAND BUT ITO TAXED THAT AMOUNT ?

Querist : Anonymous

Querist : Anonymous (Querist)

18 July 2014 yes it is a loan.............................

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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18 July 2014 loan can be given if it is to be paid back but not as gift.

Querist : Anonymous

Querist : Anonymous (Querist)

18 July 2014 SIR IT MEANS WIFE CANNOT MAKE GIFT TO HER HUSBAND

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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23 July 2025 Great question! Here’s the scoop:

**Can a wife gift money to her husband without tax consequences?**

* Under **Income Tax Act, Section 56(2)(x)**, gifts received from certain relatives, including a **spouse**, are **fully exempt from tax** in the hands of the recipient. So **gifts from wife to husband are NOT taxable**.

* However, if the wife **gave money as a "loan"** and it is not repaid or documented properly, the Income Tax Officer (ITO) might **disallow it or treat it as income**, especially if they suspect tax evasion or lack of genuine transaction.

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### What might be happening in your case?

* If the wife gave Rs. 2 lakh as a genuine **gift**, it should NOT be added back as income.

* If the wife **gave it as a loan**, and the husband did not repay or there is no evidence of repayment terms, the ITO might consider it as income or unexplained cash.

* Also, lack of documentation or clarity can lead to additions in scrutiny assessment.

---

### Can this amount be capitalized?

* **No**, additions made by ITO in scrutiny assessment generally cannot be capitalized because:

1. It's not a genuine capital expenditure.

2. It doesn’t create any asset or long-term benefit.

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### What to do?

* Provide proof that the Rs. 2 lakh was a gift (gift deed, bank transfers, etc.).

* If treated as a loan, show documentation for repayment terms and actual repayments.

* If it is genuinely a gift from wife, raise objections to the addition citing the exemption under Section 56(2)(x).

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**Summary:**

* Wife can gift money to husband tax-free.

* If treated as a loan, it must be repaid; otherwise, the tax officer can add it as income.

* Such addition is not capitalized in accounts.

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If you want, I can help draft an explanation or objection letter for the scrutiny assessment! Would you like that?

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