Kuldeep Singh (201 Points)
30 June 2024Me and my wife are salaried person and i transfered 1.5 lakhs from my salary account to wife salary account in FY 2022-23 and FY 2023-24. My wife has invested that amount in Zerodha stock delivery trading and earn profit. As profit earned by her is not clubbed with my income, mean to say, profit amount showing in her income tax records not mine so she is paying tax on it since last two FY.
I wanted to know that why amount/gift send by husband to wife is not clubbed ?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177846 Points)
Replied 30 June 2024
Whom you expect to club the income on behalf of you?
Kuldeep Singh
(201 Points)
Replied 30 June 2024
In Clubbing, transferee (husband) is liable to pay tax on profit/interest amount, not receiver (wife). But in my case, wife is paying tax not husband...
what is clubbing of income ???
Kuldeep Singh
(201 Points)
Replied 30 June 2024
Profit earned amount showing in wife income tax 26AS , why profit not showing in husband 26AS ?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177846 Points)
Replied 30 June 2024
That is what I mean, Form 26 AS will only show the person who actually received the profit. It will not declare the taxable person who should declare it in his/her ITR. It is the responsibility of the person liable for the tax, to declare the income in his/her ITR.
Kuldeep Singh
(201 Points)
Replied 30 June 2024
Where should the husband enter the profit earned by the wife in his ITR so that the entry of the same amount gets removed from the wife's 26AS ?
Kuldeep Singh
(201 Points)
Replied 30 June 2024
(ii) salary, Commission, fee or any other form of remuneration whether in cash or in kind from a concern in which the husband has a substantial interest.
However, no clubbing will be made in case the wife/husband possesses technical or professional qualification and the income is solely attributable to the application of her technical or professional knowledge and experience-Section 64(1)
It may be noted that the above provisions are also applicable in case of transfer or any assets or in case of above referred payments by a wife to her husband or vice-versa.
My Question:
In case of my clubbing income, no need of husband to pay tax on profit earned by wife. Wife is qualified so she can also pay tax on profit earned by herself. am i right ?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177846 Points)
Replied 01 July 2024
Your interpretation is not correct.
The rule applies for earning by assesses qualification, if any. Otherwise why sec. 64(1) in IT act?
Kuldeep Singh
(201 Points)
Replied 01 July 2024
| Originally posted by : Kuldeep Singh | ||
 |
Where should the husband enter the profit earned by the wife in his ITR so that the entry of the same amount gets removed from the wife's 26AS ? |  |
In case of clubbing income, is it compulsory for only the husband to pay tax on profit earned by wife on stocks or can the wife also pay tax herself ?
Note: wife also have salaried account and having 26AS records
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177846 Points)
Replied 01 July 2024
In case of any gifted assets between spouse/s, sec. 64(1) IT act is applicable. If the gift receiver is taxed at higher slab rate then the donor, in such case ITO accepts the income assessment offered by gift receiver.
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