Senior Citizen ~ Husband transfer 40 lacs of his Savings to Wife for her financial Security .

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Senior Citizen ~ Husband 75 yers Central Govt Pensioner , Breaks 40 lacs of his Savings in FD  to gives to Wife for her financial Security as He is suffering from Cancer Dementia and Parkinson . He Cannot manage his finances any more as wished to transfer all his savings to Wife. Account so that in case anythings happens to him family dont face finance issues  

Wife who is 71 years old  invest this amount  FDs to generate income and manage expenses 

Question 

Do the wife who files income tax of 4 lacs every year should disclose this 40 lacs in her ITR under exempt  income . In her  AIS there is an SFT005 entry for purchase of Time deposits of this 40 lacs so this raises a doubt on where this money came from 

Husband will club this interest in his ITR 

What will be the best way to report this , so as to  avoid IT Notice as both are senior citizens and any notice they wont be able to handle and  manage 

Replies (3)

Even if you declare the Gift under exempt income in her ITR, the query might be raised by ITD. For that you should not be worried as the amount got transferred though banking channel and the father would have already paid tax over it while declaration in his earlier ITRs. You may need to simply provide these details, in case of any query. Do not be worried about any scrutiny, in such case.

Thanks Sir,

 

Fathers have broken his existing FDs and transferred it to my mother as my Father  cant take any financial decision for his health condition for Cancer Dementia and Parkinson 

 

We do not have Gift Deed due to this health and mental condition 

Will clubbing provision will apply for this case 

1. On safer side better make Gift deed, or declaration with two witnesses. 

2. Yes, clubbing provision applies.


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