Gift to Wife

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1)Can a person gift money to his spouse without attracting Sec.64 of the Income Tax Act ? Note that the person does not genuinely would want to have any right over the money given to his spouse

 

2)A person has given money to his wife. The wife invests the money in NSC. In the given case Section 64 of Income Tax is attracted for the interest accrued on NSC. I would like to know whether the person can claim deduction u/s 80C for the money invested in NSC. Note that the NSC certificates are in the name of his wife.

 

Kindly answer pointwise in the order question is being asked.Thank you.

Replies (1)

Hi Anil..

Yes Sec.64 is attracted in this case as husband is gifting Money which is invested by wife in NSC which generates Interest ,which will be clubbed with income of husband and is taxable...

Hey but no need to worry because annual accretion (interest) on NSC is presumed as reinvested and the husband can claim deduction u/s 80C.

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