My wife owns some agricultural land. Soon after marriage, she had given me some cash for getting wood-work done for my apartment. Few years later, I transferred that amount to her account from which she created FD. Will this attract clubbing provision?
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Paying back to spouse
Replies (7)
Dear Pardeep,
Gift from wife is not taxable in income tax act.
But any loan exceeding Rs. 20000 in cash attracts penal provisions.
First you tell, whether the amount is gift or loan.
For further specific query.
Feel free to contact on email id: barthwalandassociates @ gmail.com
Thanks Ashish for the reply. I believe acceptance of cash from wife can't be construed as a loan or advance under sec. 269SS.
Pls correct me if I am wrong
Hi,
Loan taken from anyone exceeding Rs.20,000 is attracting the section 269SS and 269T. so it will create the problem to you. you have transferred the money to wife as gift so clubbing provision is attracted.
Hello Pardeep,
1) The query you asked, constructs loan. As you takes amount and revert back.
2) Income of Fixed Deposit in the hands of the spouse. I will again say depends upon the nature of first transaction.
Once again, thanks Ashish for the reply.
From my perspective, it was like I took loan/financial-help from spouse and then repaid.
Wrt income generated from Fixed Deposists, what is the preferred nature of first transaction that will avoid clubbing provision ?
Make proper entries to comply with sec269SS & 269T. Pls dont worry no penalty.
Make proepr entries and no clubbing provisions.
From :
FCA Dimple Pandya
Thanks Dimple Pandya. Can you pls explain further on where and how to make proper entries ?
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