Income Tax Rules: If you are also one of those people who transfer money to the wife’s account every month, then be alert and see where the wife is using that money because the way the wife spends it can create an income tax liability for you.
Income Tax Rules: If your wife is a housewife, then obviously you must be giving her money for household expenses and her own expenses. Earlier people used to use cash, but now the use of UPI has increased. In such a situation, most people transfer money to the bank account, so that they can use the money according to their need.
If you are also one of those people who transfer money to your wife’s account every month, then be alert and see where your wife is using that money because your wife’s spending pattern can create income tax liability for you.
When will tax liability arise?
If you give money to your wife every month and she invests this money in SIP or any other scheme, then also she will not have to pay tax on it. The income from this will be added to the husband’s income and the husband will also be responsible for paying income tax according to the tax slab. Due to this income, the wife is not obliged to file Income Tax Return (ITR File).
In this situation, the wife will have to pay tax
If the wife reinvests the income from the investment, then the income from it will be considered as the wife’s income and the wife will be liable for income tax as per the tax slab. In simple words, once the income earned from the investment is reinvested, the income generated will be calculated and added to the wife’s income on a year-to-year basis. If income tax is payable on it as per the tax slab, then the wife will have to pay it. In such a situation, it is better to file ITR on earning any kind of income.
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