The final date of submission of Income Tax returns is nearly right here. It is frequent perception that transferring money into wife’s account for family bills would assist the husband save taxes.
The COVID-19 pandemic period has related individuals to digital way of life to a big extent. Especially now the purchasing of on a regular basis objects has turn out to be digital to a big extent.
People are additionally giving extra significance to on-line for money transactions. In such a state of affairs, if you are transferring money for home bills to your wife’s checking account each month, then the query arises whether or not the wife will get Income Tax notice?
Tax specialists imagine that the wife doesn’t turn out to be chargeable for Income Tax when one is depositing money in wife’s account for family bills each month. This transaction will probably be thought of as husband’s revenue solely.
The wife won’t need to pay any tax on this. In easy language, the wife won’t get any notice from the Income Tax Department for this quantity. But if the wife invests this money repeatedly and will get revenue from it, then taxable revenue will probably be made on the revenue to be generated.
There are numerous different sorts of revenue which can be exempt below numerous sections of the revenue tax act. There is a schedule known as Exempt Income (EI) in the tax types the place you want to offer particulars of exempt revenue.
Some of the incomes that are exempted from revenue tax, are receipts from statutory provident fund, public provident fund, superannuation funds, scholarship obtained for finishing training and curiosity earned from postal financial savings accounts as much as ₹3,500 in a monetary yr.
Exempt revenue of minor kids which needs to be clubbed in the revenue tax return of both of the dad and mom additionally must be reported in the revenue tax return. Gifts obtained from shut family members reminiscent of husband and wife, father and son and so on as outlined by the tax division is tax exempt.