Husband has to pay income tax on wife’s earnings from FD, gold, shares under clubbing of income in these cases
· economictimes.indiatimes.com
ITR filing: Transferring investments to your spouse to save taxes is a common misconception. The Income Tax Department scrutinises fund sources and can club income back to the original provider. This applies to FDs, shares, and gold, where income or capital gains from gifted assets are often taxed in the transferor's hands. Proper documentation and reporting are crucial to avoid penalties and tax demands.
The clubbing of income provision is designed to stop tax avoidance by preventing the transfer of assets or income to family members without adequate considerati...