Income tax alert: Sending money to your wife? Here’s what you must know

A specific income duty rule could put your deals under scrutiny, If you regularly transfer plutocrat to your woman for ménage charges. Understanding this law is pivotal to avoid implicit duty issues.

Are transfers to your woman taxable?

Generally, the plutocrat a hubby gives to his woman isn't taxable. still, if your woman invests this quantum in fixed deposits( FDs), real estate, or stocks, any income generated from these investments may be conjoined with your income, leading to fresh duty arrears.

crucial rules on cash deals

• Cash Transfers Over Rs 20,000 If you give your woman further than Rs 20,000 in cash, the Income Tax Department may check the sale.
• Avoid Large Cash Transfers It’s safer to use banking channels for quantities over Rs 20,000 to help gratuitous duty scrutiny.
• Gifts Are duty-Free plutocrat given to your woman as a gift isn't taxable. still, if she invests it, the income earned from the investment will be taxable under your name.

What do sections 269SS and 269T say?

To check black plutocrat and regulate cash deals, the Income Tax Act has two important vittles

• Section 269SS Prohibits accepting a loan, deposit, or advance exceeding Rs 20,000 in cash.
• Section 269T Requires any loan or deposit prepayment over Rs 20,000 to be done via banking styles.

How to avoid a duty notice?

• Use Bank Transfers Always shoot plutocrat via UPI, NEFT, or bank transfers rather of cash.
• Be aware of Investments If your woman invests the plutocrat, insure proper attestation to avoid clubbing of income.
• Formalize Large Transfers If you’re transferring a large sum, draft a gift deed to avoid duty- related complications.

By following these guidelines, you can secure your fiscal deals and help any unwanted scrutiny from duty authorities.