Clubbing of income

Tax planning 356 views 2 replies

A Husband gives gift to her wife amounting to rs.500000/- out of that money wife started business and earn profit

 

pls tell whether that profit is taxable in the hand of husband or wife

 

rgds

kk

Replies (2)

Yes it is taxable under the Income Tax Act, 1961.

It depends on the professional skills put in by the wife to do the business.


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