tax treatment of cash gift to wife

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RITESH KOTHARI (B.COM, FCA, DISA(ICAI)) (778 Points)
Replied 01 September 2009

MR. GOKUL,

EVEN IF THE WIFE IS AN ASSESSEE UNDER THE INCOME TAX ACT, STILL THE INCOME ON THOSE SHARES WILL BE CLUBBED IN HER HUSBAND'S INCOME.

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VARUN (PCC STUDENT) (523 Points)
Replied 05 September 2009

still the income will be clubbed in the income of the husband....

Sourav Modi (Learner!) (306 Points)
Replied 03 February 2010

This clubbing thing applies only to amount gifted to wife or somebody else also?

C.Balaji (Learner) (1867 Points)
Replied 03 February 2010

i think only to wife.... please refer sec 64....

Krishna (Advocate) (88 Points)
Replied 03 February 2010

"Transfer of Assets without adequate consideration" - u/s 64, Is GIFT amounted to "without adequate consideration ?"

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CA Saurabh Shukla (Accounts Executive) (223 Points)
Replied 04 February 2010

there is a good tax planning to escape from clubbing provision...............

instead of giving gift to wife for investing in shares or elsewhere , you can give him loan.

in that case earnings from that investment will not club in your income.

if i m wrong, pls. correct me...........

Krishna (Advocate) (88 Points)
Replied 08 February 2010

please interpret the term "Without Adequate Consideration", While gifting, there is no consideration and there is no question for adequate and inadequate consideration. If the husband gifts to wife, there is no consideration and the terms "without adequate consideration" has no meaning here. If the husband sells a property of 2 lakh worth for 1 lakh to wife, it amounted to without adequate consideration, here only the clubbing provision applies