Hi,
What do you mean by " CROSS GIFT TO WIFE " ?
Is that the gift given by " HUSBAND TO WIFE" and then " WIFE TO HUSBAND "
Is the below treated as " CROSS GIFT " ? WHAT WILL HAPPEN IN THE BELOW SITUATION? PLS CLARIFY.
Husband gives wife a gift of say Rs.5 Lacs. And after 2 or 3 months, wife gives a gift of Rs.3 Lacs to husband. In this case of above where both husband and wife exchange gifts of different value, how clubbing of income is done?
I am thinking that gifts of equal value can be exchanged between husband and wife as their own asset without clubbing provision.
In the above case, Net gift amount given by husband to wife is Rs. 2 Lacs (that is 5 Lacs minus 3 Lacs). Husband will club the income earned by wife on the net gifted of Rs.2 Lacs. And wife and husband each will show the income earned on Rs.3 Lacs by each as their own income because gifts of equal value can be shown as their own capital asset. Income on Rs.3 Lacs will not be clubbed and shown as their own income. And income earned by wife on net gifted amount (Rs.2 Lacs) will be clubbed in husband hands.
Kindly Clarify...
CAclubindia
