Can wife Loan Husband 5Lakhs from the money gifted by her father
1 year ago
My father in law had given Rs5lakhs as a Cash Gift to my wife. This was given as cash during 2015. During the purchase of flat same year, I had taken that 5lakhs as a loan from my wife @10%ROI with the condition that I will pay it after 5years only and can pay first principal 5Lakhs and subsequent years interest amount on compounded basis to my wife. She gave cash to me and i deposited through challan in my bank account. (Now bank statement for that transaction show as Self transfer) We had simply written in A4 paper and keeping it for reference.
1) Did my wife had to show Rs5L cash Gift (Given by her father) "under exempted income or income from other sources" in her filed ITR1 for FY 2015-2016 as she was also working & earning during 2015.
2) is the Written signed document in A4 size Paper for the cash gift between father and daughter is sufficient.
Please contact any Auditor or Chartered accountant to get clarity as advocates except practicing on tax side cannot answer your question.
For your first question, your wife needs to report the cash gift of Rs. 5 lakhs as income from other sources in her income tax return for the relevant financial year (FY 2015-2016). Gifts from relatives are exempt from income tax up to a limit of Rs. 50,000 per year, beyond which they are taxable as income from other sources. Now towards your second question, While a written and signed document between father and daughter may serve as evidence of the cash gift, it may not be sufficient for income tax purposes. The income tax authorities may ask for additional documentation or proof to verify the transaction, such as bank statements or receipts. Please seek an expert advice over this matter.
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