Gift from wife

This query is : Resolved

Saurabh Pokar (Querist)
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06 September 2014 If i recieved gift from my wife worth Rs 50,00,000/-. Now if i invest such money into any of Business then What is treatment of Profit from such business. wether it will considered as my own B & P or it will be clubbed with my wife's income? Pls reply as soon as possible.

CA Devanand Jethanandani

CA Devanand Jethanandani (Expert)
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06 September 2014 Dear Saurabh,

As per my opinion.
Income earned from such money invested in business will taxable to you only.

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Saurabh Pokar

Saurabh Pokar (Querist)
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06 September 2014 mr devanand,there is written that, any income earned from gift will be clubbed with transferor. does that clubbing applied ovr here ?

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gbalakrishnan

gbalakrishnan (Expert)
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08 September 2014 if gift is as a registered irrevocable deed then only situation arise like the one author asked here.

Till that time IT might unnecessarily pounce on the business person or club the income as also source of funds unless duly documented!