tax treatment of cash gift to wife

 MR. GOKUL,

EVEN IF THE WIFE IS AN ASSESSEE UNDER THE INCOME TAX ACT, STILL THE INCOME ON THOSE SHARES WILL BE CLUBBED IN HER HUSBAND'S INCOME.

still the income will be clubbed in the income of the husband....

This clubbing thing applies only to amount gifted to wife or somebody else also?

i think only to wife.... please refer sec 64....

"Transfer of Assets without adequate consideration" - u/s 64, Is GIFT amounted to "without adequate consideration ?"

there is a good tax planning to escape from clubbing provision...............

instead of giving gift to wife for investing in shares or elsewhere , you can give him loan.

in that case earnings from that investment will not club in your income.

if i m wrong, pls. correct me...........

please interpret the term "Without Adequate Consideration", While gifting, there is no consideration and there is no question for adequate and inadequate consideration. If the husband gifts to wife, there is no consideration and the terms "without adequate consideration" has no meaning here. If the husband sells a property of 2 lakh worth for 1 lakh to wife, it amounted to without adequate consideration, here only the clubbing provision applies

Murali sir u are 100% correct.

So, follow my tax planning.

If it is wrong. pls. correct me...........