Transfer funds from wifes NRE account to own NRE Account

If you are transferring from the NRE a/c of your wife to your NRE a/c, there is no issue. When you are buying or investing that money, the income on such investment shall get included in her income, if such income is chargeable to tax in India. For instance, if you buy a house in India out of the funds transferred by your wife and let it out, the rental income on such property will be clubbed in her hands.

As the transfer of proposed transfer involves her money as well as your money, it is advisable to have two separate transfers to ease the workings for determination of tax liability, if any, on clubbing of incomes.

Hi

You can transfer such funds from your wife's account to your account and show such transfer as gift. Show the gift as exempt income in the income tax return. Execute a gift deed OR statements mentioning such transfer as gift (statements to be notarised).

Yes, this can be done. The statement should specify all details of transfer.

It is only a document proof to be kept for any future enquiries from the tax department.

Also, show such exempt income of gift in your income tax returns.

Hi,

There is no problem in transferring money from your wife's nre account to your new account.

You can treat the money received as a loan and repay at later stage in order to avoid any formalities of gift and applicablity of clubbing provisions.

Please feel free to call/ revert in case you need more clarity.

Thanks and regards

Abhishek Dugar

CA CS B.Com

If your wife is transferring, say, Rs 20 Lakhs, out of which say Rs 12 Lakhs is your money and the balance Rs 8 Lakhs is her salary savings, then she can transfer Rs 12 Lakhs and Rs 8 Lakhs separately to distinguish the nature of funds being transferred to your account.

If you are buying the property in the joint name of yourself and your wife, she can make the payment directly from her salary savings and you can make the payment directly from your savings. There will be no clubbing then.