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sravan

Category : Clubbing..,

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July 30, 2018 9:34 am

I am transferring 5 lac amount every year to my wife's account from which she is using for 1.5 lac in Sukanya account, 1.5 lac in PPF and 2 lac for household expenses. For filing itr-1, whether she need to show 5 lac amount as exempt income (gift income) plus interest income for savings and FD or el...

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Amlan Dutta

I will answer this in details .......The provisions relating to gift tax have been dealt with under Section 56(2)(x) of the Income-tax Act, 1961. As per the law as it stands today which was amended in 2017, gift received by any person by any person or persons are taxed in the hands of recipient under the head ‘Income from other sources’ at normal tax rates except few exemptions one of which includes receiving gifts from close relatives (covering spouse). Any transfer of assets to close relatives (parent, spouse, sibling, lineal ascendant/descendant) is not taxed.

Many people use this rule to transfer assets to others who are either in a lower tax bracket or do not pay tax at all and save tax on income from these assets.

To check this, Section 64 of the Income Tax Act contains clubbing provisions as per which any income from investment made or assets purchased in the name of close relatives (spouse, minor child or daughter-in-law) is clubbed with the income of the person making the investment and taxed accordingly .
This applies to all types of investments such as shares, fixed deposits, land, building, post office savings and mutual funds.

Further, income from assets transferred directly or indirectly other than for adequate consideration to a person or association of persons who may benefit the individual's spouse or son's wife is also clubbed with the transferer's earnings.

So, if a person opens a fixed deposit in his wife or minor child's name, the interest earned will be clubbed with his income. Also, if a person buys a property in the name of his wife, who has not contributed any money, the rental income will be clubbed with his income.
Here, i am assuming that the gift was without any receipt of adequate consideration
So, here the gift of 5 lakh rupees gifted by you to your spouse will be exempt for your wife(spouse) and she can show it in exempt income of the tax return , however please note that income from investments like interest on FD , PPF interest etc will get clubbed to your income ...she will only show FD gift income in exempt portion and she wont be able to take benefit of 80C since here deductions exceed income ....because of clubbing provisions under 64, you will show the FD interest income in your return ...as far as your own income is concerned , it will be taxable as per its income head ... if it is exempt show it under exempt income portion of the return ....

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November 26, 2018

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Amlan Dutta

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November 26, 2018

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Rishab Arora

Category : INCOME H.., 44ADA ( ..,

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July 30, 2018 6:50 am

If a doctor work in a private hospital and got salary & also have capital gains from short term and long term from share market.
My query is this that during the filling of ITR3:-
Total income is Rs.480000 and TDS is deducted under section 194J.
Is that person show the expenses in ITR 3

IF YES , the...

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Amlan Dutta

If he doesn't have any proof of expenses, then forget it ....but a better option is to avail 44ADA and show income at only 50 % of gross receipts since medical does fall under admissible professions listed under 44AA(1) for taking presumptive benefit under 44ADA ...

April 30, 2019

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Naveen kumar srivastava

Category : INCOME H..,

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July 30, 2018 1:41 am

Sir
I am a retired person , my source of income is pesion , intrest of savings & income from business.

I have to pay salary to my workers .
My question is how can i show salary given to worker in my ITR Fy 17 -18 .

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Amlan Dutta

Yes, you can can debit the income statement by eligible expenses (Which includes salaries and wages)...select category properly to avoid query getting deleted...

July 30, 2018

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raghav bajaj

Category : UTILITY ..,

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July 30, 2018 1:03 am

Sir, i am filing itr-1&4 by offline mode for that i have generated xml file

1.) I want to ask if i upload this xml file directly it will generate acknowledgment or it will give option to reverify which can be corrected through online.

2.) Since if tax is payable if in offline xml i forget to add ...

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Amlan Dutta

1.) It will directly generate acknowledgement ...no option to re verify and correct ...if anything is wrong , you will correct details by filing a revised return

2.) Like already explained, no need of generating xml in such a case ...even if generated , first fill details of self assessment and then...

August 1, 2018

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