Clubbing Section ( wife's income with husbands income )

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 December 2010 Hi,

Query I wanted to ask is if

Situation 1) I gift 30 lacs to my mother

Situtation 2) My father gifts 30 lac to my mother

My mother invests in Fixed deposit at 6%

Interest income Rs. 1,80,000 is Clubbed

Situation 1) 1.8 lacs is charged in mothers income.

Situtaion 2) 1.8 lacs is clubbed in fathers income.

Is the above situation correct???

note - my mother is not filing returns nor having separate qualifications.

Situation 3) If my mothers brother (mama or nana ) gifts rs 30 lac to my mother.

then my mother invests in 6% fd.

Can the income be charged to my mothers personal return instead of clubbing with my father??

Sunali

Sunali (Expert)
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10 December 2010 Income is clubbed only if a person transfers an asset i.e. source of income without adequate consideration to his/her spouse or to his/her son's spouse(for the purpose of the given case).

Hence, you interpretation is correct. However when your maternal Uncle gifts Rs. 30 Lacs to your mother the interest income will be assessed (from FD) as your mother's income and won't be clubbed with your father.

P.s. Its better to register Gift deeds in case of giving gifts to avoid any future complications with A.O.