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Paying back to spouse

Pradeep (SW Engg) (40 Points)

07 December 2016

My wife owns some agricultural land. Soon after marriage, she had given me some cash for getting wood-work done for my apartment. Few years later, I transferred that amount to her account from which she created FD. Will this attract clubbing provision?

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7 Replies

CA Ashish Barthwal (Practising Chartered Accountant) (104 Points)
Replied 07 December 2016

Dear Pardeep, Gift from wife is not taxable in income tax act. But any loan exceeding Rs. 20000 in cash attracts penal provisions. First you tell, whether the amount is gift or loan. For further specific query. Feel free to contact on email id: barthwalandassociates @ gmail.com

Pradeep (SW Engg) (40 Points)
Replied 07 December 2016

Thanks Ashish for the reply. I believe acceptance of cash from wife can't be construed as a loan or advance under sec. 269SS.

Pls correct me if I am wrong

CA VIRAL SANGHVI (Finance head) (681 Points)
Replied 07 December 2016

Hi,

Loan taken from anyone exceeding Rs.20,000 is attracting the section 269SS and 269T. so it will create the problem to you. you have transferred the money to wife as gift so clubbing provision is attracted.

CA Ashish Barthwal (Practising Chartered Accountant) (104 Points)
Replied 07 December 2016

Hello Pardeep, 1) The query you asked, constructs loan. As you takes amount and revert back. 2) Income of Fixed Deposit in the hands of the spouse. I will again say depends upon the nature of first transaction.