Gift

No. It is not necessarily meant gift

Dear Sir,

Please let us know cheque is issued for what purpose? If cheque is issued for any investment in the name of your wife, then yes it will be treated as gift and she should file return of income.

But if the cheque is issued for household expenses, in my opinion it will not be treated as gift.

Please feel free to call/revert in case of any doubts

Thanks and Regards

Abhishek Dugar

CA CS B.Com

Hello Sir,

Would you please explain the nature of transaction as to why is the Cheque issued and to whom is the cheque issued ?

Hello,

Just issuing cheque would not make it in the nature of Gift. But for what purpose that cheque was issued and to whom shall have to be seen. If you could throw some more light on the nature of transaction.

Thanks,

Ria

Hi,

no, it is not consider a gift by you to her.

as the amount in the bank is earned by you and you have already paid tax on that income.

So if she is issuing cheque to pay for expenses it is not gift and otherwise also she is issuing check on your behalf in her capacity of joint holder and for convenient purpose.

Sir in your case need to check the amount to be transferred and how your wife got that amount to be treated in her hands

If your wife is the second joint holder, no issue. The joint account contains only the amounts on which you would have paid tax or claimed exemption. It is only utilisation of your income.

However, if your wife invests the money in her own name, then the income earned on such investment will be clubbed with your income and assessed in your hands.