Is It Possible To Reduce Income Tax By Splitting Income Between Husband And Wife ? CA Sriram Rao

[@madhavshenoy7711]

Appreciate covering all the cases out of my mind but require at some point of time, what a discussion it was...!!!

[@gkdas905]

Another feather in cap of NRI Money Clinic. Very good Attempt of bringing all views frankly.

[@anilprasanna]

Wow.. This answers so many of my questions. You all are so clear and helping in understanding the ever complex tax laws. Truly grateful.

[@MrSushil1234]

I was looking for a video on such tax clauses to save my taxes, and its answers my most of the queries. thanks a lot for this knowledgeable video !!!

[@reg4026]

These all rules are applicable for Salaried employees only. In case of business, people directly deposit money to spouse account from customers. No Govt, will ever want a salaried employee to be rich as they know that those are the only smartest people which is dangerous for their governance.

[@samiranguha2456]

Very good discussion. Thanks.

[@jamesgeorge1968]

Good topic. Please clarify if husband, wife have joint NRE FD while both were employed abroad and after returning to India can the interest earned from resident FD be split between husband and wife.

[@sriramrao2514]

Who’s funds are kept as deposit, in their name entire interest would attract tax

[@dksingh4in]

Thank you for clarifying it so nicely, however I hv a question.. If a NRI sends money to his wife's account/demat (not NRI) for investment and trading.. how such investment and its capital gain shall be treated..?//

[@sriramrao2514]

Clubbing would apply in this scenario also

[@632958]

Sir, just to have more clarity on the topic, I would like to ask, if i gift money to wife from my NRE account and then she does her own investments then how the taxation will apply?

[@sunilkololgi9738]

I am an NRI from USA. In USA it is completely legal (acceptable) to do any tax planning! Looks like in India this is not true

[@NRIMoneyClinic]

@xyz there is a detailed video on this channel on Taxation of gifts on this channel . Please watch and be guided

[@sk.afsaruddin8429]

Very helpful discussion

[@muralittthavalam8972]

It is nice to know the value information on sharing /splitting of assets to save income tax. There are occasions when parents wanted to give a lump sum amount to their grown up children out of their savings, or at the time of retirement or money earned by disposing some old property or breaking some FDs. Aim may to help their children to build their business, career or even create some income by putting the money as FD on their own name. Basically gifting money to their grown up children. I want to know who will pay the income tax for the income generated out of this gifted money . Parents or children. Thanks.

[@22SN335Neha]

Children

[@nagarajubandi3131]

Thank you🙏 very much sir please make a video or tell more information about deemed owner. Actually 🏦 many Banks are in a rented property only and run their business for many years in this banks or tenant or private person (person who is paying money to landowner) becomes the real owner of land . Please tell how to protect land rights from tenant (person paying rent kindly understand my question

[@TanmayRshimpi]

how will govt knw

[@umashankarsharma1478]

Sir, Thank you for explaining the clubbing concepts so precisely and clearly. I had settled 50% of a plot of vacant land standing in my name to my wife's name about 3 months ago.Now, a builder has approached to buy it. We both will execute POAs' (yo be regd.)and Agreement for Sale(unregd.)in his favour and he will release the full consideration to both of us. He will later execute Sale Deeds to buyers of his flat as my POA holder. From the consideration recvd., both of us will claim S. 54EC deduction by investing in specified bonds. Will the clubbing provisions apply here? Thanks

[@siddhanathankrishnaswamy5652]

Thank you sir for clarifying the doubt ,

[@mkgvip]

Hi Dr Bhat and Mr Roa, Thanks for the very informative video. If both husband and wife have income but deposited in a joint account, in that situation can we divide the income between the two or not?

[@rajagopalancv8255]

The AIS considers the first named account holders PAN for ITR compliance. It is always prudent to have separate accounts having husband / wife's 's name as first name for proper split & optimal income tax. One joint account can not be linked to 2 PANs.

[@mkgvip]

@@rajagopalancv8255 Hi Mr Rajagopalan, Thank you very much for your reply and for clearing my doubt.

[@valsakumar1]

I have already opened a FD in the name of my wife' as well as myself hoping charging lesser IT. After listening your talk I wish her back the amount and deposit it in my own name. can I get it back.

[@SajayanKS]

My wife Taking care of my two kids, doing all jobs at home. taking care of old parents. She is sacrificing her life for us. Can I give some money as salary? So she can invest in stock market. She really deserve it.Right?

[@npratapvet]

Informative discussion. Great effort dr.bhat

[@NRIMoneyClinic]

Thank you so much for y0ur kind words

[@krishnakantsharma1985]

@NRIMoneyClinic sir if I transfer interest amount generated through FD to my wife and then she makes a FD and earns interest, would that interest be exempted from tax upto exempted limit?

[@arupkumarchattopadhyay4747]

What interest will remain to transfer money to spouse if income generated comes back to the giver ?

[@anilprasanna]

I have a question. When both husband and wife are outside india, husband transferred some money to wifes NRE account. And interest was not getting taxed in india. But when wife gets pregnant and visits india for 3 years, she converts her NRE back to india savings account and tax on interest gets deducted at source. Should husband declare this interest income from wife fixed deposits when filing his returns in USA ? As its already getting taxed in india.

[@sriramrao2514]

Better to consult a CPA in US to get proper answers for this…

[@chaluvaiaha7289]

If transfers are done by way Gift deed, will there be any difference in clubbing of income. Tansferee becomes absolute owner by law, income derived out of it will be their own. Please advise.

[@vivektiwari5064]

What if husband has died and then spouse gets the FDs do we still need to fill income tax for husband?

[@anants.6399]

If the husband repays the loan (in full or in part) taken by his wife, will there be any clubbing of the saving in interest payable by the wife, in the hands of the husband?

[@632958]

Sir, thanks the video, Need clarity on this, if i gift money to wife from my NRE account and she does her own investments in Mutual fund and equity market then how taxation will work

[@sriramrao2514]

its been answered in video....

[@sreevikvik8568]

Thank you very much Sirs. Please make a vedio relating to assets on minors, acquired by will or by gift deed by grandparents. If that properties sold by parents due to any reason like could not able to maintain the property because of living in abroad, that time sale deed money LTCG taxes exempted if invested in 54 EC bonds in the name of minor child, firstly is it acceptable according to income tax law or not. A lot of questions in mind please make a vedio on this topic of minor assets sold by parents. Thanking you.

[@kevinmanis]

Thanks sir for the video, I have a related question to this Income tax provision U/64 (1) (4): What if the husband transfer money to wife's account, later that amount is used for trading in share markets; in this case will the profit/loss will be considered under husband's taxable income or wife's taxable income ?

[@sriramrao2514]

Please watch full video, this question is answered

[@kevinmanis]

@@sriramrao2514 thanks for reply. I did watch the whole video then posted the question, maybe i didn't understand or it was not clear/specific in the video. Let me go through video once more.

[@harilalbapodra6226]

If a person has given gift to his spouse when both are NRI, and subsequently wife has transfer this fund to her NRE account in India, and subsequently they become resident, whether the Interest income on such amount still clubbed in Husband’s income.

[@sriramrao2514]

Yes…

[@harinathankrishnanandam9709]

If husband gives his wife say 1-5/10 lakhs and same is invested in share market,MFs,Bonds then the income or loss will go to the husband or wife?

[@NRIMoneyClinic]

Please watch video for answers

[@ajaykumaryadav1952]

Please discuss about the gifting to other relatives like brother sister sibling friend etc

[@sriramrao2514]

There is a video on GIFT on this channel, you can watch the same and be guided

[@mahendrakamdar9547]

Sir, you missed out on trf of funds as gifts by a person to his major son or daughter..... pl clarify 2. Try explain giving detailed examples as well. Thx

[@sriramrao2514]

Wherever clubbing provisions applies in the case of individuals, are covered in the video, whichever combinations are not discussed in video, clubbing provisions would not apply.

[@mahendrakamdar9547]

@@sriramrao2514 wonderful answer.

[@sunitshanbhag9536]

@@mahendrakamdar9547 Take care Of Parents And Adult Children ,Spouse will support you good intentions and All live happily ever after .

[@mahendrakamdar9547]

@@sunitshanbhag9536 taxation or sociology?

[@sunitshanbhag9536]

@@mahendrakamdar9547 Tax Man will Approve

[@purushottamdash3188]

Nice clarifications 👌

[@avijoshi7696]

Dear Sirs, in case husband and wife NRI’s own a flat and rent it, is the rental income divided equally between husband and wife as far as IT is concerned? Thanks in advance.

[@sriramrao2514]

Yes, advisable

[@sajujm88]

If we transfer 1 Cr to wife or buy a House for Rs.1Cr in the name of wife and if she is inactive then the rent / bank interest received from house is Tax ble to husband. On the other hand, if she reinvest the rent /interest amount and start a small business, say curry powder making pickling, tailoring etc. then the splitting of income naturally happens and income tax in payable by wife in lower rates, correct?

[@NRIMoneyClinic]

To best of my knowledge, rent and interest will be clubbed in your hand . Business income will be taxed in the hands of your wife. Please consult a chartered accountant

[@cmsarvaiya1472]

How to club wife's interest in the return of husband? This type of return will be consider Individual or HUF. And how to clearly mention in the return that wife's interest income is also clubbed in husband 's return. Please mention how to file such return. Please advise. This is for Resident status.

[@sriramrao2514]

There are proper columns in the return of income…. Advisable to take help from consultant

[@seshuaiyar5047]

Can a couple have a settlement. When only husband works, but wife claims equal right on Al, assets?

[@sriramrao2514]

They can have, but taxation will not be affected and clubbing would happen unless the couple is covered by Portuguese civil code

[@vivekn9856]

Sir, please help me understand the tax benefits of filing ITR Jointly for a married couple.

[@sriramrao2514]

Unlike some European countries/US/Canada etc., there is joint filing of ITR in India..

[@vivekn9856]

@@sriramrao2514 please help me to learn more about it

[@sriramrao2514]

@@vivekn9856 Sorry... typo error... there is NO joint filing of return of income in India...

[@karankkrj]

How the government identifies if the interest is generated from the gifted income and if the clubbing is applicable?

[@sriramrao2514]

They would check the source of funds for taxing the same, you would explain it as gift from you and legitimate so that source cannot be brought to tax, then IT dept. would say that interest is liable to be clubbed in your hands…

[@francisdsouza5309]

Can loan be given to a spouse to do any business or any activity to generated income. How is that income be treated

[@NRIMoneyClinic]

If it is her active income , it will be treated as her income not to be clubbed with spouse . This is clearly explained in the video

[@satyendabholkar3788]

If transfer is in the form of gift then what are the implications?

[@sriramrao2514]

There is a video on GIFT on this channel, you can watch the same and be guided

[@22SN335Neha]

Gift deed

[@vipanmahajan]

What if I deposit amount in the ppf account in the name of wife.? Ref intt on ppf is tax free.

[@sriramrao2514]

Income is to be clubbed… but no tax on that as it is exempt

[@AmarKumar-gj2zo]

I appreciated for your valuable Vdos. Are you also providing or giving services for forex.

[@jagadishraom.r.5313]

WHAT HAPPENS TO THE GIFT MADE TO SPOUSE OUT SIDE INDIA,( BEFORE COMMING TO INDIA) AND THE SAME IS BROGHT IN TO INDIA ,WHEATHER INCOME EARNED BY SUCH GIFT WILL BE CLUBBED OR CLUBBING PROVISION OF IT ACT APPLIES TO THE INCOME EARNED FROM SUCH GIFTED ASSETS ? (PLEASE SEE GIFT IS DONE OUT SIDE iNDIA WHERE INCOME TAX ACT DOES NOT OPERATE)

[@sriramrao2514]

Point of taxation is the year in which one earns income… if the source of such income is by way of splitting of asset between husband & wife in past, irrespective of when, where or how it is split, clubbing Provisions would apply

[@renarebaakbar4759]

♥️♥️♥️👍👍

[@mustaafabapumia6006]

Bill Gates did the śame!

[@baskerr1445]

Sir, as always you are rocking with the right issues and clear perspective. Thanks a lot. One clarification. The LIC policies which are taken in Gulf countries and policyholders returned to India. In that case, are the maturity proceeds from LIC policies taxable in India? This is including children education policy? Whether clubbing provision applies to this situation? Is this covered in any other video of yours?

[@sriramrao2514]

Maturity of LIC policies where ever purchased, would be exempt provided the conditions mentioned in section 10(10D) of The Income Tax Act... Wherever clubbing provisions applies in the case of individuals, are covered in the video, whichever combinations are not discussed in video, clubbing provisions would not apply.

[@Ythishate]

That was pretty informative , Thank You sir. Would also request if its possible to make video on taxation on Cryptocurrencies bought by NRI out of India , when they return back to India.

[@srir5655]

Thanks for the informative video. Income tax implications of gift from earning parent to major children is not explained. Appreciate your response on this. Thanks again 😊😊

[@sriramrao2514]

Wherever clubbing provisions applies in the case of individuals, are covered in the video, whichever combinations are not discussed in video, clubbing provisions would not apply.

[@ViralDave_26]

I have a question - Can we split "Deferred Annuities" between Husband and wife and save on taxes as Annuities/pension are considered as income and it does come under consideration of income tax - is it recommended ?

[@sriramrao2514]

Clubbing provisions would apply in this case also...

[@vimalav5486]

If both husband and wife earn and the wife transfers an asset to her minor son. But the income of the husband is more. In that case the income from the said transfered asset by the wife to her minor child should be clubbed in the hands of wife or husband?

[@NRIMoneyClinic]

This question is answered in the video

[@ahmedanand1]

Sir, I gave a lumpsum say 10lakh to my wife, then she invests it in market instruments/shares/debentures etc. I understand the gain or loss (say 2 lakh gain) is mine for tax purposes. But thereafter if the gain of 2lakh is reinvested again, in say the market in her name, will that 2nd tier gain be taxable to her or to me? Secondly, if entire sum of 12lakh, after first cycle of investment, 10+2, is reinvested, then how will we distribute the tax liability? Will the subsequent gain from 10 lakh be my income taxable and gain from 2 lakh be her taxable income? Lastly, is there a time limit to how long, how many years, I have to pay tax on her gain? 5 years, 10years, etc. Bcz maintaing and tracking her income from her own resources and that from gifted resources is virtually impossible. Please enlighten us. Thank you.

[@ganeshbankoti]

Any clarification RCVD,?

[@jasandroidphone3820]

Initial 30% tax + service tax 15% , which means govt is consuming almost 50% of our earnings as tax and in return absolutely zero from govt to its citizens

[@gopalkrishnaprabhu375]

Awevixe tax or cess is always on tax payable and not separately. In the case you referred it is 15 % on 30 % which works out to 4.5 % aggregating to 34.5% and not 45%

[@anilvaruna2007]

2 important scenarios are not covered :- 1) Money given to Major Child and Major Child invests it then income from that investment will not be clubbed. 2) Money given to parents and parents invests it then income from that investment will not be clubbed.

[@sriramrao2514]

It is impossible to discuss all the situations as there can be thousands of combinations... However, wherever clubbing provisions applies in the case of individuals, the situation are covered in the video, whichever combinations are not discussed in video, clubbing provisions would not apply.

[@archieus7752]

Please also note one important exception: if you are governed under Portuguese Civil Code, income is automatically equally divided between husband and wife

[@rnseth70rnseth59]

Good evening If somebody( NRI) has earned some money in Dubai where salary is non taxable and now he wants to send that amount to India then.. 1) How he can send the money to India and 2) Will this money be taxable Thank you 🙏

[@bhaskarachanti9066]

Investing in the name of daighter ( major ) will attract clubbing ?

[@sriramrao2514]

No…