Tax-Free Gift Limits Between Spouses in India: What You Need to Know
Learn about tax-free gift regulations for spouses in India and how income from gifts is treated under the Income Tax Act.
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In India, there's no limit on tax-free gifts exchanged between spouses. However, any income generated from the gifted amount is clubbed with the husband's income for tax purposes under the Income Tax Act, 1961.
FAQs & Answers
- Is there a limit on tax-free gifts between spouses in India? No, in India, there is no limit on tax-free gifts exchanged between spouses.
- What happens to the income generated from gifts given to a spouse? Any income generated from the gifted amount is clubbed with the husband's income for tax purposes under the Income Tax Act, 1961.
- Are gifts given by a husband to his wife taxable? Gifts given by a husband to his wife are not taxable, but any income generated from those gifts will be taxed as part of the husband's income.
- Can I give my wife a large sum of money without tax implications in India? Yes, you can give your wife any amount of money as a gift without tax implications, but be aware that any income generated from that money will be taxed as your income.