Gift of cash to wife

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Himanshu Redkar (Querist)
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11 August 2018 If I payoff the loan taken by wife and show the fund transfer as a gift to wife, what are the tax implications?

ALOK GOEL

ALOK GOEL (Expert)
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12 August 2018 1. Gift to wife by husband is taxable in hands of Husband on any earning by that gift money to wife from husband.
2. Recoverable loan with some deed given to wife is taxable in hands of wife in case wife earns something out of loan money.The payoff the loan by wife to husband is to be done by wife from her taxable or declared Income only .

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