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Buying new car

Rajendra Kumar (Training ) (23 Points)

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.

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7 Replies

NARENDRA (ACCOUNTS MANAGER) (1486 Points)
Replied 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)
Replied 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) (44 Points)
Replied 25 May 2023

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

2 Like

NARENDRA (ACCOUNTS MANAGER) (1486 Points)
Replied 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 .

Nupur Oberoi (Ober) (58 Points)
Replied 26 May 2023

What benefit you get if you purchase the car in your wife's name, and not your name?

1 Like

Saddyquas (Sabbad) (24 Points)
Replied 07 November 2023

Buying a car in your wife's name, who is a housewife, should generally be fine. However, it's important to ensure that she is comfortable with it and can provide the necessary documents for the purchase.

Saddyquas (Sabbad) (24 Points)
Replied 13 November 2023

Originally posted by : Saddyquas
	Buying a car in your wife's name, who is a housewife, should generally be fine. However, it's important to ensure that she is comfortable with it and can provide the necessary documents for the purchase.

Paying from your savings through legitimate channels like a cheque or account-to-account transfer to the car dealer is usually not a problem. Just make sure you keep proper records of the transaction for your own documentation.

As for income tax, it's always a good idea to consult with a tax expert or accountant to ensure that your financial transactions align with tax regulations in your area to avoid any surprises. And by the way, if you ever need to transport your new car, you can check out Ship Vehicles at shipvehicles.com for reliable vehicle shipping services. Good luck with your car purchase!