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Tax filing of wife of an nri living in india

Raj Reddy (Self) (5 Points)

05 September 2019

Hi,

I am staying in US for the past 2 years. I am overstaying in US. Every month I am sending money to India into my savings account and my wife's savings account.

I am investing in Mutual fund through my wife. Currenlty I am investing 1.7 lac in Mutual fund through her per financial year. I am planning to open a DEMAT account and start buying shares worth around 5 lac.

My questions are:

1. Is it necessary for her to file tax returns?

2. Is there any limit on the amount she can invest in Mutual fund and trading shares per year?

3. I will buy the shares but do not sell till 5 years? Do I still need to file ITR, as I am not selling them in the near future?

4. If I need to file ITR for her, how can I show the amount I am sending into her bank account from USA?

Please help me.

Thanks

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2 Replies

Kriti Sharma (student) (53 Points)
Replied 06 September 2019

1. If her total income for the year exceeds the basic exemption limit (Rs.250000/Rs.300000,Rs.500000) according to her age, she needs to file ITR.
2. No limit
3. Depends on the volume of transactions and your total income.
4. As foreign remittances from husband. It won't be taxable.

Kapadia Pravin (17264 Points)
Replied 06 September 2019

Under Indian Income Tax Act,

You can give money in any form to your wife but remember all the income which arises from that money will be deemed to be your income for tax purposes and not of your wife's.

So there may not be any need to file return of your wife.