Dear Sir,
Hope you are doing well !!
Due to clubbing provision, it will be treated as your income.
Thanks & Regards,
Payal Chhajed
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,
Dear Sir,
Hope you are doing well !!
Due to clubbing provision, it will be treated as your income.
Thanks & Regards,
Payal Chhajed
Hi, I was looking at below article and it is mentioned clubbing is not required. https://www.moneycontrol.com/news/business/personal-finance/your-son-overseas-sent-you-some-money-should-you-pay-tax-1054829.html Thanks,
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.
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.
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
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.
Further reinventment of that income will not be clubbed in your hands.it will be taxed in her hands only.
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
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