Cash transfer treatment between spouse under new regime income tax

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Sri ram

26 Points Posted on 28 June 2025

Wife is still working & Husband is retired. Wife accumulation in account of about 15L is transferred to husband to gain higher interst advantages. Both are tax assessee & It's her regular savings after tax paid.

However question now are -

As the amount treated in husband ITR as Gift from 1st Linier relative, so it was exempted under old tax regime but what does the new tax regime consider the same?
As it is already tax declared income under wife, No do it attracts fresh tax for the Husband?
If tax exempted, does it mentioned under other income of husband declaration, if so under which section the exemption shall be claimed during ITR filing ?

Replies (3)

Quick Summary

This discussion explores the tax implications of a wife transferring savings to her retired husband under the new income tax regime. While previously exempt as a gift from a lineal relative, clarification is sought on its treatment under the new rules. The consensus is that the gifted amount itself remains tax-exempt, but any interest earned on the transferred funds will be taxed under the wife's PAN due to income clubbing provisions.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121546 Points Posted on 29 June 2025

Same as earlier; no change.
No tax over the gifted amount. as received from 'relative.'
The income/interest earned over the amount (FD) will be taxed under wife's PAN, as per clubbing rovision.

sabyasachi mukherjee

Profession

19978 Points Posted on 29 June 2025

Kindly arrange to post details.

Rushabh

Automation Expert

10733 Points Posted on 13 November 2026

A genuine gift of ₹15 lakh from a wife to her husband is not taxable as a gift in the husband’s hands under either the old or new tax regime. Section 56(2)(x) of the Income-tax Act excludes gifts received from a “relative”; a spouse is expressly included. This exemption does not depend on the wife’s savings having already borne tax.

However, interest earned after the transfer is generally clubbed with the wife’s income under section 64(1)(iv), since the transfer is between spouses without adequate consideration. The clubbing rule is separate from the gift exemption and applies under both regimes. The husband should not report the gift as taxable income under “Other Sources”; keep a transfer record and, preferably, a simple gift declaration for documentation. Report the interest in the wife’s return, subject to the applicable facts and tax treatment.

This distinction is useful when reconciling a spouse’s transfer with interest-income reporting and return disclosures. Manual tracking across bank statements and ITR schedules is difficult; automation reduces repetitive work while professional judgment remains in control. At Jir AI, our 2,000+ AI agents and 650+ integrations streamline GST, ITR, TDS, TCS and other compliance workflows, helping reduce manual workload by up to 70%. For a smoother compliance workflow, connect with us on WhatsApp: https://wa.me/message/3HVOZ7HIY4ESC1