if my wife includes gift amount given by me in her ITR as income from other sources, will clubbing provision still apply?
Replies (4)
Quick Summary
This discussion clarifies whether a gift of Rs 4.0 Lakhs given to a wife, which she declares as income in her Income Tax Return (ITR), would still be subject to clubbing provisions. The consensus suggests that if the gift is correctly reported, clubbing provisions are unlikely to apply, as the income is derived from a gift rather than being generated by the husband's assets. However, it's advised to ensure the arrangement doesn't appear to circumvent tax laws.
Logically it should not apply. However if the arrangement is such that there is revenue loss to government then assessing officer may attract the clubbing provisions.