I and my wife, both are working and paying tax in 20% bracket. What if I transfer an amount of 1Lakh to my wife or vice versa. Will that be considered taxable?
Besides, if I transfer any amount from my salary account to my other savings account, how do the income tax rules apply on that?
Thanks if somebody can help me with this everyday query☺
If source of funds which are transferred to yr spouse (or vice versa) has already undergone tax deduction, then there is no question of retaxing the same. For eg. u get salary on which the employer already has deducted tax and if u transfer such amount to your spouse, then no taxability for transfer.
Transfer from one a/c of you to another account of you is not taxable, as there is no second party involved in the transaction. One cannot gain anything by transacting with herself/himself. However, any interest that you earn from both the accounts would be taxable as income from other sources (after 80TTA deduction)
Mere transfer of money to your spouse have no tax implications. Its only when any benefit is derived therefrom like interest,dividend,etc. That such derived income is taxed in your hands.
Where you have transferred salary amount from one account of yours to another one also belonging to you there shall be no tax implications.
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