Cash transfer treatment between spouse under new regime income tax

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 -

  1. 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?
  2. As it is already tax declared income under wife, No do it attracts fresh tax for the Husband? 
  3. 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 (2)
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.

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

Kindly arrange to post details.

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