Gift to Wife
Anil
(Querist) 18 June 2008
This query is : Resolved
1)Can a person gift money to his spouse without attracting Sec.64 of the Income Tax Act ? Note that the person does not genuinely would want to have any right over the money given to his spouse
2)A person has given money to his wife. The wife invests the money in NSC. In the given case Section 64 of Income Tax is attracted for the interest accrued on NSC.
I would like to know whether the person can claim deduction u/s 80C for the money invested in NSC. Note that the NSC certificates are in the name of his wife.
Kindly answer pointwise in the order question is being asked.Thank you.
Guest
(Expert) 19 June 2008
He can give the gift, now not only 64 but you have to examine 56 also.
Once a gift is given, it her money and NSC also will be in her name. If she doesnot have any taxable incoem in her individual capacity, then clubbing comes into picture. If she doesnot have any income individually then 64 is attracted.
He can 80C upto 1,00,000/- inclusive of the both husband and wifes savings.
