Spouse income clubbing

This query is : Resolved

Shilpa Jain (Querist)
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27 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.

Is there anyway that the income from FD and stock market investments can be reasoned as belonging to W for income tax purpose? Please note that H's individual gross income is higher than W's individual gross income.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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27 June 2008 No. It is not possible.

Shilpa Jain

Shilpa Jain (Querist)
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27 June 2008 As the money given by W to H is gift & the money was earned by W with her professional skills, doesn't the section 54 income tax clubbing rule apply here? If yes, then W may be responsible for income tax on invested income.

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Shilpa Jain

Shilpa Jain (Querist)
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28 June 2008 closed