Tax calculation

If money is transferred from wife's bank a/c to husband bank a/c than the money is taxable in whose hand?? and how much is the exemption avaliable for this??
Replies (5)
if u r treating as Gift from Wife to Husband then the income shall be clubbed in the hands of transferor...But remember in ordinary course of business mare transfer of cash from wife to husband vise versa ..does not constitute gift or transfer of property. Read here INCOME FROM ASSETS TRANSFERRED TO SPOUSE [SECTION 64(1) (IV)] Income from assets transferred to spouse becomes taxable under provisions of section 64 (1) (iv) as per following conditions:- The taxpayer is an individual He/she has transferred an asset (other than a house property) The asset is transferred to his/her spouse The asset is transferred without adequate consideration. Moreover there is no agreement to live apart. If the above conditions are satisfied, any income from such asset shall be deemed to be the income of the taxpayer who has transferred the asset. When Section 64(i) (iv) is not applicable On this basis of the aforesaid discussion and judicial pronouncements, section 64 is not applicable in the following cases: If assets are transferred before marriage. If assets are transferred for adequate consideration. If assets are transferred in connection with an agreement to live apart. If on the date of accrual of income, transferee is not spouse of the transferor. If property is acquired by the spouse out of pin money (i.e. an allowance given to the wife by her husband for her dress and usual household expenses). In the aforesaid five cases, income arising from the transferred asset cannot be clubbed in the hands of the transferor There is no exemption

It depends on nature of transfer, (income/gift),

if it is incme transfer, the transfered amount is taxable to husband.If it is gift, the actual receipt to wife's account is taxable, not the transfer amount of wife to husband.

What if a husband transfers a certain amount of money every month to wife's account for personal /Household expenses .

Originally posted by : CA Pooja Agarwal
What if a husband transfers a certain amount of money every month to wife's account for personal /Household expenses .

@ pooja it is not taxable....it is petty money which is not considered as income....

 

I think there is a HC jusgement that if money is received by spouse on REGULAR basis then it partkes the nature of income,

Furthere even pin money or household savings (like husband gave some money to wife for household shopping and she is able to save some money,be it bargaining power,then such money becomes income of wife)

 

R.B.N.J. Naidu v. CIT [1956] 29 ITR 194 (Nag.)

[Pin money]

R.Dalmia V. CIT[1982] 133 ITR 169 (Del)

[House hold savings]

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