19 June 2008
Husband's(H) gross income is much higher than wife's gross income. Wife(W) gives her professionally earned money to Husband (H). H opens FD with bank & invests remaining part of that money in stock markets on his name. Bank deducted TDS with H PAN and all transancation done in stock market are with H PAN.
Does the income from FD and stock market investments belongs to W for income tax purpose? Please note that H's individual gross income is higher than W's individual gross income.
19 June 2008
U r saying that she has earned the money with her professional skills. But the money is invested or used using his PAN, then the Husband can show that the money given by his wife as loan. and the income will anyhow be taxed in the hands of husband. and the wife should charge interest on the amount given to her husband. and she has to pay tax on interest earned.
20 June 2008
Per the below query resolution, even incase of gift, investment income should be taxable in the hands of only wife if the money invested belongs to her due to her professional skills. Please advise.
CAclubindia
