Income tax query

Question BankCategory: Income TaxIncome tax query
AvatarKollipara sundaraiah asked 5 months ago

Sir,
A  Doctor (I.t. Assess) some amount rs:80 lacs transferred to another I.t. Assess(wife) bank account transfer .this amount i.t.Assess (wife) used   different cash loans repayment purposes
Question:
Both I.t. assess above transactions treatment for cash gift to wife or cash loan to wife benefit  and safe method in I.t. act.

1 Answers
AvatarRabindra answered 5 months ago

Basically your question is about treatment of Gift to wife in income tax. 
This can be explained with the help of following example..
Mr. A transferred an amount of Rs. 50 Lakh to his wife as gift..
In this case, this sum of Rs. 50 is given from income of Mr. A which is already taxed in his hands. 
Now this sum of Rs. 50 Lakh received by wife is not taxable in the hands of wife and gift from relative is exempt. 
But any income earned by wife of Mr. A from investing this 50 Lakh will be clubbed in the hands of Mr. A. because this money was given by Mr. A to his wife without any consideration. 
Hence gift given will not be clubbed and gift value is not taxable in the hands of gift giver or gift receiver.
But income earned by wife by investing the money received as gift from husband will be clubbed with the income of husband and it is taxable in the hands of husband. 

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