Gift taxation

This query is : Resolved

Sonam (Querist)
Follow

27 March 2014 If a tribal wife gives cash gift to her husband ( non tribal) then whether income generated from gift is taxable or not

pranav

pranav (Expert)
Follow

28 March 2014 There is no criteria to judge gift based on caste of donor or donee. As per my opinion gift to relatives is totally exempt

Sonam

Sonam (Querist)
Follow

25 April 2014 But gift given by one spouse to other is taxable in the hands of donor as per clubbing provision.

So just wanted to clarify as the donor here is a tribal wife who is exempt from income tax.
So can it be used as a tax planning tool?

Upgrade to CAclubindia Pro. Subscribe Now!

pranav

pranav (Expert)
Follow

27 April 2014 As condition itself is getting satisfied that spouse comes in definition of relative so it is exempt from taxation. thus u need not to go in caste of wife etc. dont get confused.