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Money taken from spouse

05 April 2022

Dear sir or madam
kindly help me to clear the confusion

previous year my wife teansfered Rs. 80000 to my minor children account for fd creation & it's created (minor children bank account with me not with wife)
this year I want to transfer (return) the same amount to my wife bank account from my children bank account

what would be best to show as a gift or loan or any other

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8 Replies

Kev Men (756 Points)
Replied 12 April 2022

If shown as gift, it is exempt as not taxable as given to relative. Even if given on loan it is not taxable as it is not 'income'.

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Sandip Kumar Das (206 Points)
Replied 13 April 2022

I want to return to spouse from my children account which was taken previous year
it's mandatory to show in itr
previous year interest earned from given amount
who will show interest income

Kev Men (756 Points)
Replied 14 April 2022

Since the children are minor, clubbing provisions are applicable. As per explanation to Section 64(1A) of the Income Tax Act, if the marriage of the child's parents subsists, the FD Interest income will be included in the income of that parent whose total income (excluding the FD interest of the minor) is greater.

If the marriage of the child's parents does not subsist, then the FD interest income will be included in the income of that parent who maintains the minor child in the previous year.

and once it is included in the total income of either parent, for further years also the FD interest will be included in the income of that parent only.

Sandip Kumar Das (206 Points)
Replied 14 April 2022

Ok, means I have to show in my itr because my income is greater
now I want to return her 80000 which was taken previous year in my children account
what my spouse will show of 80000 this year
and she wants to invest in stock market this amount
profit of the above amount if any earned by her who's income will be counted
it's me or spouse

Kev Men (756 Points)
Replied 14 April 2022

The Rs. 80000/- which you will return to your wife will not be considered as income as it is just a loan which is returned to her.

The profits from the above amount that she invests in the stock market will be included in her income.

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Sandip Kumar Das (206 Points)
Replied 14 April 2022

Ok thanks sir
just 1 small point
if I m returning her 80000, for this amount I have to pay interest to her or not
can any relative give loan without interest as per income tax