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Gift money

Learn Law (Student) (70 Points)

25 June 2013

My Friend have below situation

My friend’s wife is housewife and she got Gift from her father of 150000 in 2006 by A/C pay check on her name. This amount was deposited to bank as FD in joint account with husband. Till now, income from FD is clubbed with husband and income tax is paid.

Now, she want to start business and file income tax return separately. How can she show Gift money to file return?

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7 Replies

Mihir (Wealth Manager) (5293 Points)
Replied 25 June 2013

Gift received in this case is non-taxable in the hands of the wife.

Learn Law (Student) (70 Points)
Replied 25 June 2013

Thanks. But since this is old entry in bank account (2006) but now she want to file return in 2013. How to show entry and take money from joint account to individual account?

ramcharan (articled assistent) (367 Points)
Replied 25 June 2013

simply withdraw the money and use it as they want, nothing will happen regarding income tax dept. is concerned

Learn Law (Student) (70 Points)
Replied 25 June 2013

In case AO come up then do we need to keep reference to old check details?

Vibha Mittal (CA Student) (95 Points)
Replied 25 June 2013

Originally posted by : ramcharan
	simply withdraw the money and use it as they want, nothing will happen regarding income tax dept. is concerned

Sundar (Articled Assistant) (85 Points)
Replied 25 June 2013

Gift it again from joint a/c to individual a/c and file a return accordingly.

Sundar (Articled Assistant) (85 Points)
Replied 25 June 2013

But if once you take it into individual a/c then all future income arising of that money will be taxable in the hands of the Transferee i.e.Assessee(Wife)