Closure of Bank account and Transfer Balance to Spouse

[NISHANT SHAH]

Dear Expert,

Wife want to close her bank account and want to transfer balance lying in her account 20 Lac to her husband bank account. How can we show this transfer (Gift/Loan) so that no income tax can be attracted to recipient??

Please answer with justification.

[Sampath Kota]

Gift from relative is full exempt.

Spouse being a relative,there will not be any issue.

[KASTURI SETHI]

Sh.Sampath Kota Ji,

Will you please quote relevant Section of the Income Tax Act ? Thanks a lot.

AI Summary

Gift from spouse exempt from income tax; treat transfer as gift rather than loan to avoid taxable receipt. The advice states that a gift from a relative is fully exempt, and because a spouse is a relative the transfer from wife to husband can be treated as a gift without creating taxable income for the recipient; a request for the specific statutory citation was made but not answered.