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Paying back to spouse for expenses borne by her (like marriage expenses etc)

Tax queries 265 views 2 replies

My wife had some savings thru agricultural income which was used during our marriage.
I am planning to pay back that money to her and she plans to keep that in FD.
Wrt interest earned from the FD, will clubbing provisions apply ?

I was reading about clubbing provision. It says it is applicable if -
You transfer an asset to a person or an association of persons, directly or indirectly, without adequate consideration

When I checked for the definition of "Adequate Consideration", this is what I found -
Adequate consideration refers to a price which is equal in value for an act or a thing for which it is given.

Replies (2)

How to justify the expenditure during marriage of a couple must be paid by husband to wife?

you have to show contract that dates before marriage... but I don't think the same would be considered enforceable under contract Act
so clubbing would apply


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