Gift to spouse

309 views

Save Share

s k ghosh

individual

30 Points Posted on 19 March 2014

I read in ET dated 12.03.2014 that gift to spouse (including non-working wife) is allowed without any tax liability. Please confirm if it is true and in that case can I gift any sum of money to my wife regularly? Can I also pay house rent to my wife and claim deduction in my IT return?The house is owned by her only.

S K Ghosh

Replies (2)

Manoj Mehta

Head Of Department (Accounts & Finance)

1272 Points Posted on 19 March 2014

Dear Gosh

Yes to wife is non taxable as you have already paid tax on it. (say earned salary on which TDS is deducted).

Secondly i think paying rent to your wife is not a good idea. (amount will be taxable in the hands of your wife). So what you can do is find a person whose income is way below taxable limit and take rent receipts from him. It will help you take HRA benefits.

Regards

s k ghosh

individual

30 Points Posted on 23 March 2014

Sir,

As per your reply I can gift any amount of money to my wife without inviting any incometax problem.But whatever interest is earned from that money by my wife would not be added to my income, I hope.Probably, my wife has to pay tax on this interest income if it exceeds the tax-free slab.

Regarding payment of house rent to wife, I want to know if I can pay her house rent legally. Even if it leads to payment of income tax by my wife, I want to do this if legally permissible.

Thanks

S K Ghosh