Taxation of gifts

This query is : Resolved

Abhishek Roy Choudhury (Querist)
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27 February 2016 Dear Sir,
An assesse had made monetary gift of Rs. 3.00 Lac to his wife. Please tell whether gift given to wife is allowed as per IT Act and the gift received by the wife has been invested in bank's fixed deposit in her name and please tell whether the interest received will be taxable in the hands of the assesse or in the hands of his wife.

Please reply. Its urgent.

Thanks,
Abhishek.

Ankur Singhal

Ankur Singhal (Expert)
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27 February 2016 Dear
In this case gift is not taxable in the hands of wife as it falls under the definition of relative and gift from relative is non taxable.
But the interest earned from FD would be taxable in the hands of donor. I.e in hands of husband.