Gift to Spouse

Hello Pankaj, I have two questions. First is, I am in high tax bracket slab and have an FD of 50L, on which I am paying tax of 1.4L. Since my wife is in lower tax slab of 10%, I have decided to Gift 50L to my wife so that I can avoid paying the tax. Since our wedding anniversary is round the corner, I would like to transfer the funds (which got matured) to my wife's account on our anniversary day. Please clarify the following A) Can I gift the 50L to my wife and will this attract any tax to either of them B) Should I have to follow any process to transfer the funds to my wife's account? C) How should we declare Gift while my wife filing the IT returns?

Secondly, Recently we have bought an apartment(which is under construction) and we have booked on joint name with my wife. The total price of the apartment is 90L and expecting another 10L for registration. We have paid sale consideration amount of 90L (70L my share and 20L my wife share).Now we want to go for home loan for 25L to avail the tax benefit (as I am unable to take the HRA benefit and to save the tax from FD interest) and use these funds for registration and interiors Please clarify the following

A) Since we want to go for joint home loan, I want to increase the share of my wife to 50% so that we both can avail maximum tax benefits. Since her contribution was only 20L, how should I declare while filing the tax? B) Since my wife in not employed can she get tax rebate on interest repayment of home loan upto s150000 and 1L under sec 80c?

Your response will help me to plan my savings effectively. Regards Srihari

asked Apr 15 '13 at 16:15 by Srihari 165811

  1. There would not be any tax payable on gift receiving or giving as gift is given in close relation.
  2. There is no separate process to follow for transfer.
  3. There is no as such need to declare non-taxable gift amounts in ITR.

As per section 64, income earned from such gift would be clubbed to transferrer income as gift is without adequate purchase consideration.

  1. Share in property is decided by amount paid by co-owners. So share would remain 20:70 only.
  2. Yes, she can get home loan interest u/s 24 and 80C benefits, even if she is not working.

answered Apr 18 '13 at 20:47 by Pankaj Batra 5.2k320


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Asked: Apr 15 '13 at 16:15

Seen: 2,038 times

Last updated: Apr 18 '13 at 20:47