Income of spouse - clubbing provisions

Hi,

According to my opinion is here in his case he has not gifted the FD he has diverted his income so that the interest income is not taxed with him but at the same time how the same to be proved as if it was gifted.So according to me this interest cannot be clubbed in the hands of Mr.X.

Regards

Narayan

If gift is given through a gift deed and it is mentioned as irrevocable ,

will income from gift clubbed with donor(Mr X)?

If Mr. X gives gift to Mrs. X 2,00,00 and clubbing happens what will happen when

Mrs. X gives Rs. 2,00,000 as gift to her son or daughter. what will happen to clubbing .

If Mrs. X invest the gifted money in stock will it clubbed with Mr. X ?

Respected Hitesh,

If Mr. X gives gift through gift deed to Mrs. X
say amount of Rs 2,00,000 will it be clubbed?
what will happen in following conditions.

1) interest earned on gifted amount.
2) if Mrs. X invest in stock market or Mutual Fund.
3) if Mrs. X gives gift to her son or daughter through gift deed.

Originally posted by : manish_thakar
	Respected Hitesh, If Mr. X gives gift through gift deed to Mrs. X say amount of Rs 2,00,000 will it be clubbed? what will happen in following conditions. 1) interest earned on gifted amount. 2) if Mrs. X invest in stock market or Mutual Fund. 3) if Mrs. X gives gift to her son or daughter through gift deed.

Dear Manish,

In the given case, the income accruing to Mrs. X from Rs. 200000/- will be clubbed in the income of Mrs. X. Hence,

1) Interest will be clubbed with the income of Mr X.

2)Any dividend or capital gain earned on the said stock ot mutual fund will be clubbed.

3) Any income accruing to son or daughter will be clubbed only if they are minor children. But the clubbing will not be with the income of Mr. X but with the income of parent having higher taxable for the respective year.

I agree with Sunali that Gift to spouse wont work here. 

Other Alternative is to give a loan to spouse for that matter so any income accruing from that money's

invested by wife will automatically get taxed in her hands and may escape clubbing provisions. 

Regards

Sachin Phadke

Chartered Accountant

Most important part of the statement here is " in that previous year"

It implies that if the transfer has occured in that previous year, only then the interest income is taken into account of the income of the individual. Once the amount is in the spouse account for more than a year, it is responsibility of the sposue to file the returns.

income on FD of Wife included in spouse's income in this year u.s.64 then next year the same income will be taxable in whose hands