Money gifted to spouse: Can income earned from it be taxed in your hands? Tax expert explains
AI Summary
For retail investors, understanding the tax implications of gifting money to a spouse is crucial, especially in light of the clubbing provisions under the Income-Tax Act. This knowledge can influence investment strategies, as the tax liability on income generated from gifted funds remains with the donor, potentially affecting overall tax planning. As investors navigate personal finance decisions, being aware of these nuances can help them optimize their tax positions and make informed choices about wealth transfer within families.
Gifting money to a spouse may appear to be a simple and straightforward way of transferring wealth within a family. Still, under tax rules, the gift itself may not attract tax in the recipient’s hands; even so, the income generated from the funds may have tax implications for the individual who originally gifted it.
This write-up is dedicated towards discussing this aspect in detail, along with the tax-related implications and legal provisions in this case.
Original Article
Published on Livemint
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This is a results news update from Livemint, published on 27 September 2026.
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