Hi
I have given1 lac to my wife in the current financial year. This amount i do not want to get back from her .She has invested40 K in equity market & Rest amount as Fixed Deposits.
Now my queries are as under:
1. Whether can i treat the amount as gift given to my wife & what will be treatment in her hand?
2. If the amount can be treated as gift, what is the process/formalities & paper work needs to be done for the same?
3. My wife's income is below the threshold limit of income tax. What will be the treatment of Fixed deposit's Interest & Capital Gain (Short Term & Long Term) - whether it will be clubbed with my income & with her income for income tax computation
4. What will be the implication under proposed Direct Tax code for this transaction.
Kindly reply & also suggest and provide some guidance for future tax planning in this regard.
Regards
CAclubindia
