Last Chance: Get 10% OFF on CAclubindia Pro Subscriptions. Subscribe Now!

Bank transfer

300 views 2 replies

neilabcd

none

46 Points Posted on 28 February 2014

Hi Experts,

my wife and I are both salaried. Now every month whn i get a salary, i transfer 30-40k in her accounbt, and she runs the house & handles other expenses.

this money is transfered to her bank account through bank transfer.

can we get into any kind of trouble due to this?

What is the solution, should we have a joint account?

please please advise.

Replies (2)

Guest

There is no problem in gifting any amount to your wife. You have said that both of you earn salary and I hope your taxes are deducted at source and you file returns regularly. You are just transferring your taxed income to her.

But in the event she invests this amount, the clubbing provisions might get attracted. The interest she earns on (for eg) the FDs made by her out of this amount would be taxed as your income. (As per your query she spends the whole amount, so no issues abt that too!)

Income Tax Wala: (Fin. Expert)

Chartered Accountants

2015 Points Posted on 01 March 2014

As you said that you transfer the some amount every month for house hold exp. etc and if she can prove that those transfers has been spent as drawings and house hold expenses than clubbing of income provision will be not attracted.

in that case no need to worry