Gift of Money to Wife & Liabilty Under I T Law
March 17, 2009 by taxworry · Leave a Comment
I had received a big amount from my NRI husband.
1) I have a PAN card but don’t fill return .Is there any need to file a return
2) If I invest the gifted money in FD ,will there be any tax deduction at source or
3) Do i have to show the interest earned in my return as income will it be taxable what is method of tax deduction on FD earned interest.
4.) if yearly my interest is less than 2 lacs do i have to file return and can i get back the TDS deducted at source. plz answer all of my questions. Renu Sharma
The reason for filing return is that the gift received from husband is tax free only under section 56(2)(vi) of the I T Act which means that first the amount has to be part of gross total income and then it should be claimed as exempt.
Answer2) Yes, there will be tax deduction at source, however if you have no other income, you can file Form 15 G if the interest is below Rs 1,85,000 in Fy 2008-09
Answer 3 ) The interest earned on the FD out of gifted shall be taxed in your husband’s hand . Even though he is NRI , interest shall be taxable in his hand. However, upto Rs 1,50,000 he will get exemption from tax.
Answer 4) You will have to file the return if aggregate income including interest on FD exceeds Rs 1,85,000 and yes , you can claim refund of the tax deducted at source if excess tax has been deducted. But that can be demanded only if the return is filed.
If you found this page useful, consider linking to it.
Simply copy and paste the code below into your web site (Ctrl+C to copy)
It will look like this: Gift of Money to Wife & Liabilty Under I T Law