Wife’s banks deposit money in account then be careful! Will come Income tax notice — Wealth4india

According to the income tax law, if you deposit money in your wife’s account every month as a home expense, then it is not wrong. But in some circumstances it starts showing as the income of the wife. And then tax has to be paid. Let’s know what the tax experts say about this

The Corona era has connected people to digital to a large extent. Especially now the shopping of everyday items has become digital to a large extent. People are also giving more importance to online for money transactions. In such a situation, if you are transferring money for house expenses to your wife’s bank account every month, then the question arises whether the wife will get tax notice?

Tax experts believe that the wife does not become responsible for income tax when depositing money in her wife’s account for household expenses every month. Both these types of money will be considered as husband’s income only. The wife will not have to pay any tax on this. In simple language, the wife will not get any notice from the Income Tax Department for this amount. But if the wife invests this money repeatedly and gets income from it, then taxable income will be made on the income to be generated.

Originally published at https://wealth4india.com on December 26, 2020.