Sentinel Digital Desk
If you are an NRI living in foreign countries and on a regular basis you transfer some amount of you earnings into your wife's accounts, then you must be wondering that would it be taxable or not.
As per the Income Tax Act (I-T), wife is a specified relative and the money gifted to her won't be taxable in India. The money received by her shall not be taxable in your or her hands.
The wife is a specified relative and money gifted to her won't be taxable, similarly gifts received from parents and siblings which too are specific relatives enjoy tax exemption.
In case of unspecified relatives, Gifts upto Rs 50,000 are exempted from tax in India and above the said amount the any gifts will be taxable.
Gifts from any specified relatives such as spouse, father, mother, brother and sister are exempted irrespective of amount. However, as mentioned above, the income generated from the gift may attract tax under the clubbing of income provisions of the Income Tax Act.
X is a husband and Y is a wife, if Mr X gifts Rs 15 lakh to his wife then Rs 15 lakh won't attract tax and as it is not considered as income of her.
There are some other gifts which is not taxable like Gifts which are given under a will or inheritance, Property received from a local authority as defined under section 10(20) of the Income-tax Act, Property received from any fund, foundation, university, other educational institution, hospital or other medical institution etc.