Tax planning

Yes, gift is not taxable in the hands of Wife, but the amount is still taxable in the hands of husband, because here gift is provided out of taxable income. This is a  Diversion of income which is still not reduce the tax liability of assesse(husband). No gift should be made to the spouse as it will attract clubbing provisions and any income accruing from the gifted property/funds will be taxed in the hands of the transferor only i.e Husband only. Sec.64(1)(iv).

Gravit can you please explain the source of income of assesse (husband)?

Giving gift to spouse will not affect the tax liability of the individual. 

• Calculate what is the exact amount still pending for investment to get the benefit u/s 80-C. 
• Whether the premises or office of assessee is registered in the name of spouse? if yes then give the rent to spouse upto Rs 180000 and same will be claim as deducion from the income of assesse. It will help to reduce the tax liability of assessee and create the income of spouse as well.

and for more tax planning please consult with your CA.

Regards

Deepesh is correct. The husband assessee can also show the wife to be employed in his firm and claim salary deductions. The wife may be a homemaker but who cares if in the eyes of dept. she is a working professional.

Thanks,

but sir if case comes into scrutiny then it is difficult to prove that income(salary) of spouse is attributable to her knowledge or skill i.e genuineness of such payment. And clubbing provision applicable in such case u/s 64(1)(ii), but rent case is not covered here. But one more thing i forget to tell you in earlier reply ,that rent paid to spouse is still clubbed in the hands of assesse, if the said asset transfered by assessee without adequate considration in any previous year (sec64 (1)(iv) read with sec.27, otherwise not. Pardon me for my earlier reply.

Regards

you can take benefit u/s 80C, 80D

and Mr Ruhela is correct if you need more tax planning than consult