Dear sir /madam I am pensioner I trnasfered 25 lakh to my wife on march 2019 from my pension account online after 1 year ( approx) she returned to me 15 lakh through cheque in new saving account which is further invested in govt sheme.....my pension and invetment income did not crosees basic exemption so i didn file itr....i have 2 question 1) will any gift deed or legal letter is MANDATORY required? 2 should i need to MANDATORY file ITR showing these type of transcation/ income?
Dear Sir,
Hope you are doing well !!
Though it is not compulsory to execute a gift deed while gifting any asset, it does create a valid documentary record.
A gift deed ensures proof of such transfer and thus avoids confusions and misuse that may arise in the future.
There is no need to file ITR for the same.
It is not required to file ITR for these transactions if you treat it as a loan transaction. However, if the transfers are in the nature of gift, it is recommedatory (not mandatory), to file ITR.
Since you have a loan to your wife her interest income will also be clubbed and taxed in your income.
There is no mandatory requirement to prepare gift deed but it's advisable.
No need to show such transaction in your return of income.
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Thank you.
Hi
In this case gift deed is optional not mandatory.
No need to file ITR.
It would be advisable to have a gift deed to avoid any complications later.
If your income before availing any deductions is below taxable limit you will not be required to file return. But if any TDS is deducted on interest earned from any FD, you might get the refund for that.
Hello,
1. It is advisable to have a gift deed.
2. if the income is below the basic exemption limit, there is no need to file the ITR.
I hope this answer satisfies your requirements.
Regards,
CA Hunny Badlani
- Gift is usually irrevocable and it is unreturnable . In your case, it may be treated as a loan and not gift. AO may add interest on Rs.15 lacs at SBI rate in your income. Does your wife has invested money anywhere?. Also what is the ultimate use of Rs.10 lacs?
You can take phone consultation for detailed discussion.
