Income clubbing
This query is : Resolved
19 June 2008
Husband's(H) gross income is much higher than wife's gross income. Wife(W) gives her professionally earned money to Husband (H). H opens FD with bank & invests remaining part of that money in stock markets on his name. Bank deducted TDS with H PAN and all transancation done in stock market are with H PAN.
Does the income from FD and stock market investments belongs to W for income tax purpose? Please note that H's individual gross income is higher than W's individual gross income.
Does the income from FD and stock market investments belongs to W for income tax purpose? Please note that H's individual gross income is higher than W's individual gross income.
19 June 2008
U r saying that she has earned the money with her professional skills. But the money is invested or used using his PAN, then the Husband can show that the money given by his wife as loan. and the income will anyhow be taxed in the hands of husband. and the wife should charge interest on the amount given to her husband. and she has to pay tax on interest earned.
19 June 2008
If the money given by wife is gift, then will the income clubbing rule apply & hence the income won't be taxable in the hands of husband.
In the case of loan, what maximum/reasonable rate of interest can wife use for the last 1 year i.e. march 2007 to april 2008 ?
In the case of loan, what maximum/reasonable rate of interest can wife use for the last 1 year i.e. march 2007 to april 2008 ?
19 June 2008
if w give him gift, investment income will be taxable in hands of H, which is already in higher tax bracket.
reasonable interst rate can be any market rate like saving bank rate (currently 3.5% p.a.)
reasonable interst rate can be any market rate like saving bank rate (currently 3.5% p.a.)
20 June 2008
Per the below query resolution, even incase of gift, investment income should be taxable in the hands of only wife if the money invested belongs to her due to her professional skills. Please advise.
https://www.caclubindia.com/experts/experts_message_display.asp?group_id=46781
https://www.caclubindia.com/experts/experts_message_display.asp?group_id=46781
21 June 2008
Experts Help- please resolve my above query.
28 June 2008
closed
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