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Can a husband gift to wife in cash under income tax act

GHANSHYAM SHARMA (ACCOUNTANT) (28 Points)

28 November 2011

can a husband gift cash to wife inder indian income tax act/gift tax act

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21 Replies

Ghanshyam Kumar Maurya (tax practitioner) (190 Points)
Replied 28 November 2011

yes, a husband gifts cash to his wife but aggregate amount does not exceed Rs.50000/- in any financial year

1 Like

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CA VISHAL RANA,CS,B.Com,AMFI (Chartered Accountant in Whole Time Practice) (4354 Points)
Replied 28 November 2011

Originally posted by : ghanshyam kushwah
	yes, a husband gifts cash to his wife but aggregate amount does not exceed Rs. 50000/- in any financial year

1. Mr. khuswah husband can gift to his wife without any limit ...because wife is covereed in the defination of relative u/s 2(41) of IT act 1961....gift to relative is not cover by the provisons of sec 56...limit of of rs. 50000 will be applicable in case of non relative relations.

2. provisons of clubbing of income shall be applicable in this case because as per sec 64 income from cash transfer will be clubbed in the hands of husband not in the hands of wife

4 Like

CA Kumar Mukesh (CA CMA FINAL and Advance Excel Trainer) (6881 Points)
Replied 28 November 2011

Yes husband is covered under the deffination of relative so he can made gift to his wife upto his will

1 Like

valji (Accounts manager-MBA) (2150 Points)
Replied 28 November 2011

agreee with Mr rana ,gift any amt without any limit, limit is applicable other than relative

1 Like

Naresh Patel (C.A. Final) (144 Points)
Replied 28 November 2011

yes.. Sec. 56(2)(vii) covers only non relatives gifts, & husband is not covered by such section, since husband is the relative u/s. 2(24) of IT Act. He can give gift of any amount to his relative covered u/s. 2(24) without any limit.

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Ghanshyam Kumar Maurya (tax practitioner) (190 Points)
Replied 28 November 2011

yes mr rana ur statement is correct.

thanks for remembering this

Priya Mehta (CA & CS FINAL Article Assiatant) (219 Points)
Replied 28 November 2011

Originally posted by : VISHAL RANA, AMFI,CA,CS FINAL,

Originally posted by : ghanshyam kushwah

yes, a husband gifts cash to his wife but aggregate amount does not exceed50000/- in any financial year

1. Mr. khuswah husband can gift to his wife without any limit ...because wife is covereed in the defination of relative u/s 2(24) of IT act 1961....gift to relative is not cover by the provisons of sec 56...limit of of50000 will be applicable in case of non relative relations.

2. provisons of clubbing of income shall be applicable in this case because as per sec 64 income from cash transfer will be clubbed in the hands of husband not in the hands of wife

One correction to above answer by Vishal- The concept as ans by vishal for Defintion covering husband under the four ambit of the definiton is correct but sec for relative is not sec 2(24) but its explaination to proviso to clause vii of section 56(2).

Sec 2(24) defines income taxable under income tax act,1961.

1 Like

CA VISHAL RANA,CS,B.Com,AMFI (Chartered Accountant in Whole Time Practice) (4354 Points)
Replied 28 November 2011

Originally posted by : ghanshyam kushwah
	yes mr rana ur statement is correct. thanks for remembering this

mr ghansyam khuswah your welcome...because we can also do such mistake....so no prblem yarrr

1 Like

Ashwani Narnoli (.) (1843 Points)
Replied 29 November 2011

Yes, Mr. Rana is correct

CA Mohit Garg (CS Student) (213 Points)
Replied 29 November 2011

Originally posted by : VISHAL RANA, AMFI,CA,CS FINAL,

Originally posted by : ghanshyam kushwah

yes, a husband gifts cash to his wife but aggregate amount does not exceed Rs. 50000/- in any financial year

1. Mr. khuswah husband can gift to his wife without any limit ...because wife is covereed in the defination of relative u/s 2(41) of IT act 1961....gift to relative is not cover by the provisons of sec 56...limit of of Rs. 50000 will be applicable in case of non relative relations.

2. provisons of clubbing of income shall be applicable in this case because as per sec 64 income from cash transfer will be clubbed in the hands of husband not in the hands of wife

1. Mr Rana, you said if cash is given by husband than sec 64 is applicable. I want to know if payment is made by cheque than sec 64 is applicable or not

2. If gift given by one person to other person i.e. relative is exempt under sec 56, than is it compulsary to show details in assessable & ITR

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swathi (Accounts Officer) (349 Points)
Replied 05 December 2011

Gift received from relatives are exepted from tax. (Relative means covered under Income Tax Act, 1961)

1 Like

john (LEARNER) (549 Points)
Replied 07 December 2011

Originally posted by : MOHIT GARG
	Originally posted by : VISHAL RANA, AMFI,CA,CS FINAL, Originally posted by : ghanshyam kushwah yes, a husband gifts cash to his wife but aggregate amount does not exceed50000/- in any financial year 1. Mr. khuswah husband can gift to his wife without any limit ...because wife is covereed in the defination of relative u/s 2(41) of IT act 1961....gift to relative is not cover by the provisons of sec 56...limit of of50000 will be applicable in case of non relative relations. 2. provisons of clubbing of income shall be applicable in this case because as per sec 64 income from cash transfer will be clubbed in the hands of husband not in the hands of wife 1. Mr Rana, you said if cash is given by husband than sec 64 is applicable. I want to know if payment is made by cheque than sec 64 is applicable or not 2. If gift given by one person to other person i.e. relative is exempt under sec 56, than is it compulsary to show details in assessable & ITR

best consultant (p) (40 Points)
Replied 29 March 2012

I have a similar query. My wife is a proprietor. I gave her Rs. 1 lac from my salary savings for her business use. Should i make it an interest free loan or gift to her.

If it is a loan, then she can use the amount in business and pay back the principle amount. There will be no tax liability.

If its a gift, how will the income produced from this amount be calculated (in order to club with my income).

If i create a gift deed for this tranfer (done online) what wil be the tax implication for both of us?

gbalakrishnan (owner) (1373 Points)
Replied 05 November 2012

Once irrevocably gifted to wife naturally it is her personal property and so it canot be clubbbed with husband income as that gift is legal transfer under all substantial laws. when so she is the sole rightful owner of the gifted cash and under what imaginatiary rules you can club with husband's income once gifted away?

so if any rules or income tax laws are one every year changes as a revenue generator but certainly not a substantial law any more so IT laws and rules need to biw before substantial laws is it not dear Rana?