Rupesh Soni (Taxation Consultant & CA final student) (504 Points)
29 April 2014
Income Tax Wala: (Fin. Expert)
(Chartered Accountants)
(2015 Points)
Replied 29 April 2014
Dear Rupesh soni
there are two provisions would apply to your question i.e. 56 (2) and 64 (1) (iv)
as per section 56 (2) , these 3 lac is not taxable in the hand of spouse because it is a gift from relative (make sure that gift deed has been prepared)
as per section 64 (1) iv, if your spouse start business by these 3 lac than that income will be taxable in your hand even profit remains in the hands of spouse.
but if she invest 4 lac i.e. 3 lac yours and 1 lac own, than income will be taxable in the proportion of 3:1
(there is more explanations also but i have given in short for your reference)
Rupesh Soni
(Taxation Consultant & CA final student)
(504 Points)
Replied 29 April 2014
Income Tax Wala: (Fin. Expert)
(Chartered Accountants)
(2015 Points)
Replied 30 April 2014
same provision would apply as i described before
CAclubindia
