• Gift

If my wife issue check from our joint account , whether it will be considered gift automatically. Wife is not tax payer and house wife. Will she have to file return.
Asked 5 years ago in Income Tax

No. It is not necessarily meant gift

Vishrut Rajesh Shah
CA, Ahmedabad
804 Answers
30 Consultations

5.0 on 5.0

Dear Sir,

Please let us know cheque is issued for what purpose? If cheque is issued for any investment in the name of your wife, then yes it will be treated as gift and she should file return of income.

But if the cheque is issued for household expenses, in my opinion it will not be treated as gift.

Please feel free to call/revert in case of any doubts

Thanks and Regards

Abhishek Dugar

CA CS B.Com

Abhishek Dugar
CA, Mumbai
3576 Answers
183 Consultations

4.8 on 5.0

Hello Sir,

Would you please explain the nature of transaction as to why is the Cheque issued and to whom is the cheque issued ?

Rohit R Sharma
CA, Mumbai
2104 Answers
95 Consultations

5.0 on 5.0

Hello,

Just issuing cheque would not make it in the nature of Gift. But for what purpose that cheque was issued and to whom shall have to be seen. If you could throw some more light on the nature of transaction.

Thanks,

Ria

Ria Nagpal
CA, Ahmedabad
49 Answers
5 Consultations

5.0 on 5.0

Hi,

no, it is not consider a gift by you to her.

as the amount in the bank is earned by you and you have already paid tax on that income.

So if she is issuing cheque to pay for expenses it is not gift and otherwise also she is issuing check on your behalf in her capacity of joint holder and for convenient purpose.

Vishakha Agarwal
CA, Bangalore
448 Answers
85 Consultations

5.0 on 5.0

Sir in your case need to check the amount to be transferred and how your wife got that amount to be treated in her hands

Shyam Sunder Modani
CA, Hyderabad
1408 Answers
159 Consultations

5.0 on 5.0

If your wife is the second joint holder, no issue. The joint account contains only the amounts on which you would have paid tax or claimed exemption. It is only utilisation of your income.

However, if your wife invests the money in her own name, then the income earned on such investment will be clubbed with your income and assessed in your hands.

B Vijaya Kumar
CA, Hyderabad
960 Answers
117 Consultations

5.0 on 5.0

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