Tax filing on trading and other assets of unemployed individual

O

opinionmaster

New Member
#1
#1
My wife is an unemployed housewife and holds a PAN CARD.
She has a Cash Certificate and a Bhima Bachath in her name amounting Rs 50000 in total (which was contributed by me}
She also does share trading in short term(shares bought and sold in a week) with an initial investment of 35000 (which was contributed by me)

Have two queries in this regard
1. Though her current income through these doesn’t cross 1 LAC , should income tax filing be done since she holds a PAN card ?
2. Would the IT department asks for source of income for the initial investment for the Cash Certificate and the share trading . If yes, what should be replied to that ?
 
Mr.G

Mr.G

Well-Known Member
#2
#2
opinionmaster said:
My wife is an unemployed housewife and holds a PAN CARD.
She has a Cash Certificate and a Bhima Bachath in her name amounting Rs 50000 in total (which was contributed by me}
She also does share trading in short term(shares bought and sold in a week) with an initial investment of 35000 (which was contributed by me)

Have two queries in this regard
1. Though her current income through these doesn’t cross 1 LAC , should income tax filing be done since she holds a PAN card ?
2. Would the IT department asks for source of income for the initial investment for the Cash Certificate and the share trading . If yes, what should be replied to that ?
Click to expand...
Return filing is ALWAYS a good thing, the taxman cant point fingers later. File return and be done with it.

You can simply stated you gifted her the money, as gift to direct blood is allowed tax free.
 
Mr.G

Mr.G

Well-Known Member
#4
#4
opinionmaster said:
Should there be any evidence for the gift transaction.... is there an alternate way
Click to expand...
See if you have given her in white money then show cheque, If you have given her in cash and black money, She can show that she got money from lots of people together as gift for her birthday or some other occasion.
 
a1b1trader

a1b1trader

Well-Known Member
#5
#5
Mr.G said:
You can simply stated you gifted her the money, as gift to direct blood is allowed tax free.
Click to expand...
Hi G
What do you think, wife is related to one as direct blood. :lol:
Further, it seems you have half baked knowledge on taxation of gift.
Just revise your knowledge.
 
Mr.G

Mr.G

Well-Known Member
#6
#6
a1b1trader said:
Hi G
What do you think, wife is related to one as direct blood. :lol:
Further, it seems you have half baked knowledge on taxation of gift.
Just revise your knowledge.
Click to expand...
http://www.jagoinvestor.com/2013/03/income-tax-on-gifts-received.html

I am sure my friend you had some misunderstanding. Refer to point two (2).Spouse/Blood are direct and thats what I ment to say.

It seems you got that impression as I had not stated the specific articles under which they are enacted.

O-O-O
 
a1b1trader

a1b1trader

Well-Known Member
#8
#8
Perhaps you people do not know.
Gifts to spouse attracts clubbing of income and it defeats the very purpose of saving of taxes
 
Mr.G

Mr.G

Well-Known Member
#9
#9
a1b1trader said:
Perhaps you people do not know.
Gifts to spouse attracts clubbing of income and it defeats the very purpose of saving of taxes
Click to expand...
He did not state if he wanted to save tax, I told him what the tax liability of the wife will be for the amount he gifted her ie gift is tax free in the hands of the reciever, because we are talking about the wife's tax return filing.

I understand your point. But don't assume everyone here except you is an uneducated idiot. Your a chess player use some damn logic first then speak.
 
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