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.
Tax-Free Transfers: 20 Lakh from Wife to Husband's Account Exempt as Gift Under Income Tax Act An individual inquired about the tax implications of transferring 20 lakh from a wife's bank account to her husband's account, questioning whether it should be classified as a gift or loan to avoid income tax. An expert responded that gifts between spouses are fully exempt from income tax as they are considered relatives. Another participant requested a citation of the relevant section of the Income Tax Act for clarification. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
