Income Tax Rule: Today we are going to tell you in this news whether the money given to the wife for household expenses or the gift given with love is taxed or not… Let us know in this news below.
Since the implementation of Demonetisation, it was believed that transactions in cash would reduce and digitization would increase but this did not happen. But the way in which the speed of the economy increased, in that way the transactions also increased.
It grew at double the speed in 6 years and now the cash circulation has become around 32 crores. So now it is important to know in which situations we can do transactions and in which situations there is a restriction.
Money passes from one hand to another by many names but today we will talk about section 269SS and 269T. If you do cash transaction above 20 thousand then penalty is imposed on it.
What does the rule say?
Apart from this, tax experts tell that the money you give to your wife every month for household expenses, then there is no income tax liability on the wife. Apart from this, the gift given by the husband to the wife is also not counted in the income of the wife. Both these types of amount will be considered as income of the husband.
According to experts, no notice of the Income Tax Department is sent to the wife for this amount. But, if the wife invests this money again and again and earns income from it, then there will be tax liability on the income. In other words, the income earned on investment will be considered as the income of the wife on year-to-year basis, on which tax will have to be paid.
Giving a gift to the wife is not her income.
Like husband-wife, there is no penalty on transactions between father-son and some close relatives. Exemptions have been given in these cases. Under the Income Tax Act, if you give money to your wife as a gift other than income, then it will be considered as your income and you will be liable to pay tax on it. In income tax, the wife has been kept in the category of relatives. In such a situation, no tax is levied on such gift transaction.
