A I .t . Assess(husband) cash amount (bank mode)transferred to another I.t.assess(wife) Rs:50 lacs through on bank account.this amount wife used for some unsecured loans repayment purposes amount transferred.
Question:
Above Rs:50 lacs amount transferred transactions for both assess cash gift to wife or cash loan to wife treatment benefit or safe under I.t. act.
Gifts from specified relatives are exempted, regardless of amount. These relatives are spouse, father, mother, brother and sister. They also include any lineal ascendant or descendant of the individual or his spouse as well as brother/sister of the spouse. However note that even though the gift itself is exempt in the hands of the recipient, the income generated from the gift may be taxable under the clubbing of income provisions of the Income Tax Act. For example, if Mr A gifts Rs 10 lakh to his wife, the same would not be added to the income of his wife. However if his wife creates an FD from the same and earns interest, the interest would be added to the income of the husband.
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