07 May 2024
Dear Sir/Madam, In last financial Year, I had transferred money of around 20 Lakhs in different different chunks on different different dates as per need from my HDFC Saving Bank Account to my Wife's S/B Account of HDFC where she is primary and I am joint in that.
1) Can Income tax department ask for reason as mandatory or optional later on for reason of transfer of money across the other account ? 2) Would it be taxable ? I got to know that transfer across relatives is not taxable. Pls confirm. 3) At what level , I may be required to show proof of this as a gift deed , Like a proper registry or a simple notarized affidavit or Just a simple plain gift deed declaration format signed by both of us along with a witness would be a sufficient proof to show later on. Pls advise.
07 May 2024
1 No. 2 Not taxable as gift to relative. Since it's a gift to wife any income earned from such gifts will be clubbed in your hands for income tax.
3 No gift deed required. Bank statement is the proof.
07 May 2024
Thanks SIr, Just a follow up on 2nd point. 2.1) She has invested the money in stock market in last financial year. So, whatever is the capital gain or loss for her in last finanical year , it will come totally into my side income tax calculation of last financial year, am I correct ?
2.2) Suppose If she now reinvests all that previously year gifted money in this new finanical year(s), then again the capital gain or loss of new financial year(s) will come totally into my bucket of corresponding new financial year(s) ?
CAclubindia
