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Gift in cash

Ritik Chopra (student) (8123 Points)

02 April 2021

In case wife gives ₹ 50000 as gift to husband who further deposits it as FD in bank. Now in whose hand is the interest on FD taxable?

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6 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 02 April 2021

It is taxable under the hands of recipient

Kapadia Pravin (17249 Points)
Replied 03 April 2021

Under clubbing provisions nterest income will be taxable in the hands of wife

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CA Puja Sharma (Chartered Accountant) (4874 Points)
Replied 03 April 2021

FD income will be taxable in the hands of wife.

In all such instances where nature of asset is changed by the transferee spouse provisions of section 64(1)(iv) are attracted and clubbing of income takes place.

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 04 April 2021

Yes it is taxable under the hands of wife

CA Rashmi Gandhi (Chartered Accountant) (86220 Points)
Replied 04 April 2021

Clubbing provisions attracts, so same is taxable in hands of wife.

Hari Beldona (ACA) (1533 Points)
Replied 29 July 2021

Section 56(2) of the Income Tax provides for taxation of gifts received during the year in case aggregate value of all the gifts, whether in cash or in kind during a year, exceed fifty thousand rupees. ...
If gift exceeds Rs. 50,000/- entire amount taxable, cash gift not exceeding 50,000/- is exempt from tax
As per contract Act gift without quid pro quo- without consideration, that means something for something need no be there, but love and affection even friend can give gift
If gift is immovable property, say house property then clubbing provision will apply, if it is let out then rental income taxable in the hands of donor, if it is occupied by donee notional rental income taxable in the hands of donor