My wife is a house wife with no independant source of income. I am an IT assessee in the 30% bracket. I want to gift Rs.2.00 lacs to my wife in this financial year. I want to know (a)tax implication at the receipant's end, and (b) process of completing the gift transaction.
RE:Exemption of tax on gift made to wife
by Amitabh on Apr 28, 2007 01:24 PM Permalink
Your wife wont be taxed for the gift.Moreover,if this money is invested somewhere and income is earned thereon,that income will be clubbed with your income and taxed in your hands.Gift can be made by you simply by writing a letter to this effect and transferring funds from your account to hers.
