gift & related matters

I have gifted certain amounts from my salary income to my wife by way of FDRs in her name in the previous as well as current financial years. She spent the above amount to purchase a house in her name and also taken a loan from bank in her name based on the guarantee given by me.

I have taken the house for rent and the rent is paid by me directly to the bank from bank account towards her loan account.

She got PAN Number this year only.

Now, please clarify

(a) Whetehr gifts received by her in the form of FDRs will attrach income tax in her hands?

(b) Whether she is assessable for tax on her own in respect of rent received by her? or it will be clubbed in my taxable income?

(c) Whether loss on house property can be carried forward in her name? if so how may years.

(d) Based on rent paid by me, I am claiming HRA exemption in my tax assessment? Is it valid claim?

Please also provide me any other suggesions in saving of tax in this connection?

asked Apr 11 '11 at 02:29 by chvis 1111


As you provided money towards fixed deposits, interest will be taxable in your hands and not on your wife's. You cannot give rent to your wife for a house owned by her. Its considered a sham transaction. You may run into issues in case of a scrutiny.

answered Apr 11 '11 at 13:27 by pankaj 5.2k320

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Asked: Apr 11 '11 at 02:29

Seen: 1,472 times

Last updated: Apr 11 '11 at 13:28