Money to Wife, Mother, Brother - Taxable ?

Hello,

I have a few queries to which I hope I will get the answers here.

1. If I (salaried employee) give some money every month to my wife (who is a house wife) OR mother and she invests that money in shares, post office recurring deposit, savings etc is this transaction taxable at any side?

Please note that they have PAN number and have filed nil returns.

2. If I have to buy a house, can my mother give some money on my behalf to the builder? Is this taxable at any point?

3. Can I give money to my brother to help him buy a house? and if it is taxable at any point?

 

Thanks and Regards.,

Tushar

Replies (5)
Originally posted by :Tushar
" Hello,
I have a few queries to which I hope I will get the answers here.
1. If I (salaried employee) give some money every month to my wife (who is a house wife) OR mother and she invests that money in shares, post office recurring deposit, savings etc is this transaction taxable at any side?
Please note that they have PAN number and have filed nil returns.
2. If I have to buy a house, can my mother give some money on my behalf to the builder? Is this taxable at any point?
3. Can I give money to my brother to help him buy a house? and if it is taxable at any point?
 
Thanks and Regards.,
Tushar
"


 

If U Give money to ur wife than income derives from this money is taxable in ur hand as per clubing income provision...

 

If u give money to ur mother it is taxble to her if it is more than RS50000/- (sec 56)

 

if u give to ur brother than it is fully tax free to him...

Dear piyush, i just want to rectify your point on sec 56. If a person gives money to his mother it is tax free as per sec 56, since it says any lineal ascendant or descendant of the individual.

i will clarify your points:

1A. Wife- income taxable in your hands u/s 64(1)(iv).

1B. Mother- income taxable in the hands of mother

2. it will be a gift to you from your mother. if you are below 18 yrs (minor), it will be clubbed in mother's income.

3. Gift to brother is also exempt from tax. No clubbing at any point.

Hope this will clarify your doubt.

 

Thanks for the clarifications. I have one more doubt :) hope you experts will be able to help.

As I understood, if I give any money to my wife(housewife) and she invests that money in FD, Mutual Funds, Stocks and makes profits from that, I will have to pay the tax on the profits earned. But, if my wife has an Income Tax file and files returns (till now nil) can she pay the capital gains tax on the profits earned or the profits have to be included in my account and I will have to pay the tax ?

 

Thanks and Regards,

Any income from assets transferred to spouse is required to be clubbed in the hands of an individual who has gifted the same to spouse. [Sec 64 (1) (iv)] Hence, capital gain on sale of such gifted assets will be included in the income of an individual who has gifted the same and not in the spouse income.

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