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Gift Money Query

26 October 2022

Hi All,

I have a query in terms of Gifting money to spouse which i had received from my Mother.

I received Rs 10Lakh from my mother as gift, I am looking for creating investment corpus for my wife. Can I gift the money I received as gift from my mother to my wife? Is there any tax implications?

Can the gift amount that my wife received from me used for Share market investment?

Is there any tax implications for Gifting money? From my mother to me & then from me to my wife? If there is any clause that gift is void if it is being used for returnable investments??

Thanks,

Vijay

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6 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177824 Points)
Replied 26 October 2022

No tax liability over gift from mother to son or from husband to wife. But there will be clubbing of income in second case.

It means, wife can invest in shares, but whatever capital gains or dividend received over the investment will be taxed with Husband's ITR

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Vijaykumar Chandrasekaran (43 Points)
Replied 27 October 2022

Thanks for the response sir. My wife is IT assessee and in case of share disposal capital gains will be shown in her ITR & Dividend will be taken into consideration on her returns & the income tax will be paid from her account respectively.

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Krishna (Assistant) (656 Points)
Replied 27 October 2022

Even if your wife file her IT return ; then also dividend and CG will tax in your hand due to clubbing provision

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177824 Points)
Replied 27 October 2022

As per section 64(1)(ii) of IT act... which reads as ....

Income of individual to include income of spouse, minor child, etc.

"64. (1) In computing the total income of any individual, there shall be included all such income as arises directly or indirectly—

(ii) to the spouse of such individual by way of salary, commission, fees or any other form of remuneration whether in cash or in kind from a concern in which such individual has a substantial interest :

Provided that nothing in this clause shall apply in relation to any income arising to the spouse where the spouse possesses technical or professional qualifications and the income is solely attributable to the application of his or her technical or professional knowledge and experience. . . . . .. . . . . . . "

So, any income arising out of the gift to spouse will be included in the hands of the DONOR...

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