If an individual has received a gift of Rs 1 Crore from her spouse, it will not be taxable and is exempt under Income Tax Act.
But suppose, she has used this amount by investing in her business and generated profits will clubbing provisions be applicable to her ?
Note :
1) Tax Audit is applicable to the assesse
2)She is engaged in trading of shares (i.e mainly STCG type)
What if this is treated as an ir-revocable asset ?
Any Gift Recd from Related Party is Exempt in the Hands of Recipient. it is always preferable to make gift deed before giving any gift. any income earn by Recipient of this gift is taxable in the hands of Husband inn your case via clubbing Rule.
M N Rao & Associates LLP
Vijayawada
CA Inter
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Shyam S Gupta and Company
New Delhi
CA Inter
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CCI
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