16 August 2024
Sir, Husband , a Senior Citizen,gifts Fixed Deposit of Rs. 20 lacs by transfer of Fixed Deposit to Wife who is also a Senior Citizen. Under the premises kindly advise: A. Whether Gift Deed is necessary? B. If so it is required to be Registered? C. Whether income clubbing provision would be applicable unde Income Tax Act? Thanks & Regards
16 August 2024
Thank You Sir! As regards clubbing provision, both hUsband and wife are senior citizen that too 80 plus and have more or less same income and tax bracket.
16 August 2024
Sir, Point taken. However this Gift has arisen to set right the mistake by bank in renewal of FD. In view of the long association and on request did not press for correction as it would have had adverse impact on the career of concerned officer. That's how Gifts arose to set right the books.
16 August 2024
Here is a point... If that transaction could be considered as loan, reversing the transaction would be 'non-gift' and the clubbing provision would not apply.
CAclubindia
