BusinessIncome Tax Rules on Transferring Money to Your Wife
Under Indian Income Tax laws, money transferred to a wife is considered a tax-free gift under Section 56(2), with no tax at the time of transfer. However, Section 64 states that any income generated from that money, such as interest or dividends from investments, is clubbed with the husband's income and taxed accordingly. This applies to returns from fixed deposits, mutual funds, or real estate investments made by the wife.
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