• Remittance to spouse account

Hi,

For this financial year, my status is NRI. I have question around Remittance. If I transfer money to my Wife (HouseWife/No Income) Account and then she invest that money in FD. Will income from Interest of FD be counted under my Income or it will be counted under her Income(HouseWife).

Thanks,
Asked 5 years ago in Income Tax

Dear Sir,

 

Hope you are doing well !!

 

Due to clubbing provision, it will be treated as your income.

 

Thanks & Regards,

Payal Chhajed

Payal Chhajed
CA, Mumbai
5188 Answers
288 Consultations

5.0 on 5.0

Hi

 

Such income shall be clubbed with your income. So, it will be taxable in your hands.

Lakshita Bhandari
CA, Mumbai
5687 Answers
909 Consultations

5.0 on 5.0

Yes. The clubbing provision will apply in your case and you should include the interest income earned by  wife from funds provided by you as own income while filing returns. The income further earned by the wife by investing the interest income, will be her own and will not be clubbed with the husband's income.

Jasmina Jain Shah
CA, Greater Mumbai
454 Answers
4 Consultations

5.0 on 5.0

Clubbing shall apply when you're transferring funds to your spouse's account.

Lakshita Bhandari
CA, Mumbai
5687 Answers
909 Consultations

5.0 on 5.0

Dear Sir,

 

As you are transferring money to your spouse account, the clubbing provision will be applicable.

 

Income of any and every person cannot be clubbed on a random basis while computing total income of an individual and also not all income of specified person can be clubbed.

As per Section 64, there are only certain specified income of specified persons which can be clubbed while computing total income of an individual.  

Payal Chhajed
CA, Mumbai
5188 Answers
288 Consultations

5.0 on 5.0

Hi,

 

Yes, income from interest on FD will be counted your income u/s 64 of income tax act.

Karishma Chhajer
CA, Jodhpur
2450 Answers
29 Consultations

5.0 on 5.0

There will surely be clubbing of income sir, the article you are reading is related to transfer between parents and children however your transaction is between husband and wife which has been treated seperately by income tax where if a husband gift anything to his wife without any consideration and if wife earn income from that thing that income shall be clubbed in the income of husband.

 

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Naman Maloo
CA, Jaipur
4265 Answers
96 Consultations

5.0 on 5.0

Scenario one: u/s 79 in ITD, income earned under beneficiary owner is clubbed with assessee income for taxation, where your income would be considered further.

 

scenario two: you have no tax on income earned outside India and you gift to your wife in India hense, income earned on FD or other investments by your wife would be taxable to her under her income slab in India.

 

these both scenarios can happen as per the view.

Rajkumar Wagh
CA, Kolhapur
45 Answers

Not rated

Hi

Yes FD interested will be clubbed in your income.

Swati Agrawal
CA, Mumbai
1146 Answers
7 Consultations

5.0 on 5.0

Further reinventment of that income will not be clubbed in your hands.it will be taxed in her hands only.

Swati Agrawal
CA, Mumbai
1146 Answers
7 Consultations

5.0 on 5.0

Hi,

 

- Income generated from any asset transferred directly or indirectly to spouse without consideration is taxable in the hands of husband. Income earned by your wife will be clubbed in your hands.

 

- Instead of showing it as a gift, show it as a loan to the wife and she should pay nominal interest to you to satisfy the condition of loan. When FD gets matured, she should repay the loan with the same amount of FD.

 

Thanks

Vivek Kumar Arora
CA, Delhi
4825 Answers
1031 Consultations

5.0 on 5.0

Sir Interest earned on FD will be clubbed to your income as per provision of clubbing of Income

The link which you shared as above are showing the transaction between Children and Parents

and your transaction are with your wife.

SO both are different relation and have different effect in income tax

Vishal Khandelwal
CA, JAIPUR
31 Answers

Not rated

In normal case, such transaction invokes clubbing of income provision. But since you are based out of India, hence it is practically not possible for law to catch hold of you. Hence in such cases tax needs to be paid by your mom.

Chirag Maru
CA, Raipur
210 Answers

5.0 on 5.0

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