Gift under Income Tax

This query is : Resolved

RIMPI SINGHAL (Querist)
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15 December 2009 Dear All,

Whether wife can give gift to husband ?

If yes, what is the limit and what is relevant section under Income tax act ?

Thanks

CA.Tarun Maheshwari

CA.Tarun Maheshwari (Expert)
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15 December 2009 Yes. She can gift any amount to her husband, but remember one thing that there must be proof of funds to be gifted. Section 56 of Income tax act govenrs the provisions of Gift to relatives.

RIMPI SINGHAL

RIMPI SINGHAL (Querist)
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15 December 2009 Thanks !!

One more thing.

If she can gift to her husband and if any income generates from that gift,

then what will be the income tax implications. In whose income that amount will be taxable.

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Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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15 December 2009 Yes it will be taxable.tax depends upon gift category and IT Act.

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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15 December 2009 Income generated from the gifted property will be taxable in the hands of wife every year.

Sec. 64(1)

Income further accrued in the hands of husband out of such income will be taxable in the hands of husband.