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Buying new car

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Rajendra Kumar

Training

23 Points Posted on 25 May 2023

1. I have to buy a car and want to buy one in my wife’s name who is a housewife. Would there be any problem?

2. Car value would be around 25 Lakh

3. Is there any problem if I pay from my saving (by cheque or account-to-account transfer to car dealer) and do not take any car loan?

I am a service class person and all money is my saving. Please suggest so that no Income Tax surprise notice I get in the future.

Thank you in advance.

Replies (5)

Quick Summary

This discussion explores the implications of buying a new car worth around £25 Lakh in a housewife's name. The primary concern is whether paying from personal savings, rather than taking a loan, and registering the car under a non-working spouse's name will trigger future income tax issues. Advice suggests that as long as gifts and income are properly declared in tax returns, it should be acceptable, though filing an ITR for the spouse is recommended for clarity.

NARENDRA

ACCOUNTS MANAGER

1041 Points Posted on 25 May 2023

I Don't think any problem will arise in the future, if you filled your & your wife's itr on time & showed all the details. There is nothing wrong with giving a car to your wife as a gift. Let's see what others answer .

Rajendra Kumar

Training

23 Points Posted on 25 May 2023

Hi Narendra, thanks for your answer My wife is not working, she is a housewife and she doesn't file ITR also. would it be fine in that case too?

Mahipal Rathod

Com

24 Points Posted on 25 May 2023

If TCS is deducted under your wife's PAN, how will you get it back?

NARENDRA

ACCOUNTS MANAGER

1041 Points Posted on 25 May 2023

Originally posted by : Rajendra Kumar
	Hi Narendra, thanks for your answer My wife is not working, she is a housewife and she doesn't file ITR also. would it be fine in that case too?

Actually nobody will ask because you have shown a gift to your wife in your itr but i think it is better to file her itr also. Show Some income under not taxable & gift received from you so legally i think no question will rise in near future too .