Transfer of money from before marriage account

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 February 2011 My wife had some savings of around 2 lacs in a savings account in her name before marriage.

Now we are married for about 7 years. Her last name is changed after mariage. She wants to open a new account with her new name and wants to trasnfer the money from the old account to new account ?

What are implication of doing this transfer from income tax perspective ?

Ravikant

Ravikant (Expert)
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22 February 2011 No Implication, its just a normal self bank to bank transfer .

CA Punit

CA Punit (Expert)
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22 February 2011 agree..
no implication, its her own money transferring from one account to another.

Querist : Anonymous

Querist : Anonymous (Querist)

26 February 2011 Will there be any issue if she has her name as second holder in the new account ?

I already have an account where I am the first holder and she is the second holder. Can I simply transfer the amount in this account, or I should open a new account where her name is as first holder ?

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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02 August 2025 Good question! Here’s how it works:

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### 1. **Transferring Money from Old Account to New Account**

* Since **both accounts belong to your wife (whether in her maiden or married name)**, this is considered **self-to-self transfer**.
* **No Income Tax implications** arise from this transfer because it’s just moving her own funds.
* The name change on the account does not affect tax treatment.

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### 2. **If the New Account Has Your Wife as Second Holder**

* If the new account is **jointly held by you and your wife**, but you are the **first holder** and she the **second holder**, this is still a valid account.
* She **can transfer the money into this joint account**.
* However, the ownership of money becomes joint legally, which may have implications if you are thinking about ownership rights, gifts, or taxation on the income earned thereafter.
* But just the transfer itself is still a **normal transaction** with **no immediate tax consequence**.

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### 3. **Should She Open an Account with Herself as First Holder?**

* If she wants to keep the funds strictly in her name for clarity of ownership, opening an account where she is the **sole or first holder** is better.
* This is especially important for documenting income or assets for tax or legal purposes.

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### **Summary:**

| Scenario | Tax Implication | Notes |
| -------------------------------------------------------------- | ------------------------------ | ----------------------------------------------------------------- |
| Transfer between accounts both in wife’s name (maiden/married) | No tax implication | Normal transfer |
| Transfer to joint account where wife is second holder | No tax implication on transfer | Ownership is joint, future income tax depends on actual ownership |
| Opening new account in wife’s name only | No tax implication | Clear ownership and documentation |

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If you want, I can also help explain implications of joint accounts or gifting between spouses. Would you like that?

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