Tax liability on gift to wife.

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  1. Kdgoyal

    Kdgoyal New Member

    Sir,
    I gave 2 lakes to my wife on loan and she invested in bank FDR.What are our tax liability?
     
  2. sai tejesh(ca.final)

    sai tejesh(ca.final) Active Member

    If it is a genuine loan i.e you are charging interest from your wife at prevailing market rates,then interest from fixed deposit shall be taxable in the hands of your wife.
    If no interest was charged by you,then assessing officer treat this as gift and will club this income in your hands.
    If less interest was charged than at prevailing market rates,then assessing officer will invoke 40(a)(2) and tax the balance interest in your hand as deemed interest.
    Fd interest is taxable in the hands of your wife.
     
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