Transfering money to wife (assessee)

If you transfer funds of Rs 5,00,000/- from your account to your wife account, it would be clubbed in your income. So instead of direct transferring from you can root it through your HUF as giving gift to your HUF and Huf giving Gift to your wife or through your childrens similarly.

If you gift to your wife, the icome generated through that investment shall be clubbed to your income. There is a limit also of the maximum amount which you can gift to your wife during your life time. when you gift, there appears to be no need for any gift deed to be executed only a letter to this effect is sufficient. However, in my opinion you may give a loan of Rs 500000/- with free of interest to your wife through a cheque for any period and can get it back when she has that amount or in installments without interest. Thus you can legally do the things which you desire with no tax problems.