Cash/cheque gift deed to wife

2132 views 3 replies

Hi,

I came to know that by way of gift deed I can reduce my income and so less tax.

However, I have several questions below,

1. Where will I mention that I have given that much amount as gift deed in ITR?

2. Will I require to file return of my wife if after receiving gift deed still she fall under exemption limit? If yes, where will I show that amount in ITR?

3. Can I use this trick of giving gift deed every year to reduce my income?

I appreciate your guidance and clarification.

Thanks,

jdp

Replies (3)

1) gift is not to be deducted from income, but its given from tax paid income, 

2) the income generated from such gifts would be clubbed in your taxable income.

 

practically its of no gain unless the money is used to acquire a property or tax free deposits. 

Thanks U S Sharma for your reply,

Is there any way which does not invoke clubbing and I get deduction on that amount?

 

Hello jdp

i think u have missunderstood the concept of gift in income tax

whenever u transfer any income generating assets by the way of gift , income from such assets will be the income of that person to whom such gift is made.

accordingly your income reduced.

there is no seperate disclosure in ITR for such

Bt when u gift such income generating assets to your wife than as per sec 64 such income will be clubbed with transferer income..

so in ur case it will clubbed with ur income. 

so its advicable to gift such assets to ur major son to reduce ur taxable income as there is no provision for clubbing in these case

 

 

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