Can I gift money to my wife to save tax?

Can I gift money to my wife to save tax?

One cannot use a financial gift effectively to save tax. The amount received by a wife as a gift will be tax-free in her hands. Sudeep is a marketing professional with an annual income of Rs 10 lakh. ... His wife can, in turn, invest the money in a bank fixed deposit and earn tax-free income.

Can I give loan to my wife?

Give a loan If you gift money to your wife and it is invested, the income will be clubbed with your income and taxed, unless you choose a tax-free instrument like the PPF. What you can do instead is give a loan to the spouse who has low or nil income at a reasonable rate of interest.

Does wife have rights to husband's salary?

Wife is legally entitled to know husband's salary details. You can explain to your husband the need to share financial information in case of any eventuality, be it death or disability.

How can I save tax if my wife is not working?

One can put money in PPF or Senior Citizens Savings Scheme (SCSS) in the name of spouse/parents and earn tax-free returns. If you have exhausted the Rs 1 lakh limit under PPF, you can gift money to spouse, parents, adult children or siblings, who can invest it in PPF.

Can I deduct my wife's tuition?

Yes, you can claim the education credit for your wife college tuition if you meet the IRS requirements. Qualifications for claiming the American Opportunity Tax Credit are: ... You paid education expenses for eligible students. The eligible student is you, your spouse, or a dependent for whom you claim an exemption.

Are gifts between husband and wife taxable?

Gifts between spouses living together in the tax year are normally made on a 'no gain, no loss' basis for capital gains tax (CGT) purposes (TCGA 1992, s 58(1)), such that no CGT charge arises.

Can you transfer property between husband and wife?

Transfers of assets between other persons do not escape capital gains tax. ... However, because stamp duty land tax is based on 'consideration' (effectively the amount paid for the property), it is possible to transfer a property to a spouse, or anyone for that matter, with no stamp duty land tax being payable.

Can I sign over my house to my wife?

You can assign beneficial interest to your spouse using a deed of trust or a deed of assignment. A deed of trust will have clauses to include how the property is managed, lived in and able to be sold, however a deed of assignment, simply assigns the beneficial interest from one party to the other.

How do I transfer ownership of property to my wife?

| You can gift property to spouse, child or any relative and register the same. Under section 122 of the Transfer of Property Act, 1882, you can transfer immovable property through a gift deed. The deed should contain your details as well as those of the recipient.

Can a wife claim husband's parents property?

1) wife can't claim husband's property in Divorce. ... 3) She can't claim husband's parents property... In case if husband hsa transferred his property to his parents name.. but in future his siblings can ask share in that property.. so doing on parents name is not advisable... But it's up to u.

Does wife has right on husband's mother property?

A wife is entitled to inherit an equal share of her husband's property. However, if the husband has excluded her from his property through a will, she does not have a right to her husband's property. Moreover, a wife has a right to her husband's ancestral property.

Can husband sell property without consent of wife?

The husband can sell the property without takiong her consent. ... The husband is free to dispose the proeprty stands on his name which has been acquired or inherited or purchased, he need not take consent of his wife or from anyone to dispose the same.

Can I sell my house if my wife doesnt want to?

In community property states such as California, a husband can never sell a home obtained during the marriage without his wife's consent. ... However, if the husband obtained the home before the marriage, he may be able to sell it on his own, depending on whether his wife's name is on the title.

Does wife get property after divorce?

When it comes to a mutual divorce and if the property is on the name of the husband. As per the law, the wife has no right on the property. ... Then, the law grants the possession of the property for the same as a divorce property settlement.

What is the share of wife in husband's property?

In case of husband's ancestral property, wife does not have the right to it unless and until she inherits it from the deceased husband. However, in the case of partition of a joint family property (between her husband and his sons), the wife has the right to a share equal to the share of a son.