Anil Kumar (Proprietor) (107 Points)
12 March 2014Hi,
I am individual having proprietorship business, I want to transfer Rs. 5 lacs to my wife, she is also an assessee.
please let ke know the treatment of this procedure, should i make gift deed or notory attested gift deed, the income from this amount will clubbed in my income or not.
Regards....
Manoj Mehta
(Head Of Department (Accounts & Finance))
(1479 Points)
Replied 12 March 2014
Studentsca
(CA Practice )
(3577 Points)
Replied 12 March 2014
If you transfer funds of Rs 5,00,000/- from your account to your wife account, it would be clubbed in your income. So instead of direct transferring from you can root it through your HUF as giving gift to your HUF and Huf giving Gift to your wife or through your childrens similarly.
MANJEET SINGH
(DY.MANAGER ACCOUNTS)
(26 Points)
Replied 13 March 2014
RAM KUMAR GUPTA
(ADJUNCT PROFESSOR AND VISITING FACULTY ON BANKING & FINANCE)
(485 Points)
Replied 13 March 2014
If you gift to your wife, the icome generated through that investment shall be clubbed to your income. There is a limit also of the maximum amount which you can gift to your wife during your life time. when you gift, there appears to be no need for any gift deed to be executed only a letter to this effect is sufficient. However, in my opinion you may give a loan of Rs 500000/- with free of interest to your wife through a cheque for any period and can get it back when she has that amount or in installments without interest. Thus you can legally do the things which you desire with no tax problems.
shailesh garg
(Article)
(41 Points)
Replied 14 March 2014
CAclubindia
