Transfer of money to spouse

Can spouse give money to husband/wife without tax implication? if husband/wife is not earning and if they earning (both scenario) > alternatively, can spouse lend money to husband/wife

Hey @SSB,

Spouse is covered under the definition of relatives as per the Income Tax Act and hence, you can lend money as a gift without any tax implications.

However, any income generated from the gifted amount would be subject to clubbing provisions.

Hope this helps!


Does gift deed require if I want to gift money to parents ?


A gift deed is mandatory in the case of immovable property. In the case of money, it is not necessary to have a gift deed, however, if the amount is large you can have a gift deed for proof purposes.

In many jurisdictions, spouses can transfer money to each other without tax implications, regardless of whether one or both spouses are earning. These transfers are often considered gifts and are typically not subject to income tax. However, tax laws can vary depending on the country and specific circumstances, so it’s important to consult with a tax professional or financial advisor for personalized advice.

Alternatively, spouses can also lend money to each other, but if the loan is interest-free or has a below-market interest rate, it may be subject to certain tax implications, such as imputed interest rules. Again, it’s advisable to seek professional guidance to understand the tax implications of lending money between spouses in your specific situation.

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