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Money send by husband in india

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MD MABOOB ALAM

firm

57 Points Posted on 27 November 2020

Dear sir,
Kindly suggest in below case study.

I have a client who got notice from IT department .
Case: Her husband is working in Dubai and send money in wife saving account in india and total money goes to 12,50,000/- She withdraw money and consume for household expenses. Last she got notice from department what need to do.
if ITR required to fill then which need to be file.
kindly suggest me

Thanks you

Replies (6)

Quick Summary

A client received a notice from the IT department regarding money sent by her husband working in Dubai to her Indian savings account, totalling ₹12,50,000. The funds were used for household expenses. While the money itself, considered a gift from a relative, is generally not taxable in the wife's hands, any interest earned on it would be clubbed with the husband's income. If the wife's total income (excluding this transfer) is below the taxable threshold, she likely doesn't need to file an ITR. A clear explanation with supporting documents like a marriage certificate should be provided to the IT department.

Pallavi P

Job

86 Points Posted on 27 November 2020

As per my opinion, Such salary isn't taxable in the hands of Wife_because wife is considered as relative & The amount paid by Husband to wife can be considered as gift which shall not attract income tax under the provisions of Income-Tax Act, 1961. However, under clubbing provisions of this Act, any income accrued to her on such amounts (Interest) would be clubbed in Husband's income and he will have to pay tax on that.