To club income of my wife with my ITR, i understand that there is schedule for the same in ITR. we can use the same? Am i correct?
Also since that income is clubbed with me, how my wife will show in her ITR that her income is already clubbed with her husband and she need not show the same? How to explicitly tell that in her ITR?
Hey @sandeep0604,
In our opinion, clubbing of Income has to be reported only in the ITR of the assessee with whom the income is clubbed. It is reported under schedule SPI(Special Person’s Income). You will be required to enter the PAN, TDS and income details of the person whose income is clubbed, spouse in your case.
Thus, as all the details are disclosed in your ITR, your wife is not required to show the same in her ITR.
However, in a different thread, as you had also mentioned that the shares are gifted to your wife, she will have to report the monetary value of the gift as exempt income while filing her ITR.
Hope this helps!
Thanks for the reply. One more doubt. She is already filing ITR and have some income. Now with my shares transferred to her , how to divide her income in such a way that some amount of her own shares ,MFs are actually shown in her ITR and the clubbed income shown in my ITR ?
Hey @sandeep0604,
The monetary value of the shares that are gifted to your wife needs to be reported under schedule exempt income(EI) in her ITR.
Moreover, she can disclose all of the other incomes, and gains from shares that she holds (apart from the shares that were gifted). This can be calculated on a proportionate basis.
Hope this helps!
The wife’s AIS also shows this income which was already clubbed with the husband’s. Is there any schedule in her ITR2 where such income can be specifically excluded, as it may result in Assessment Officer raising a claim for mismatch in income between AIS and ITR. Can it be shown under her Schedule EI? If yes, then under which section of IT Act?
Hi @Investor_Only,
In this case, first, the you can provide feedback directly in the AIS portal. By navigating to the specific transaction and clicking on the ‘Feedback’ option, you can select the reason as ‘Source of receipt is a gift which is not taxable’.
Additionally, while filing the ITR, this income can be disclosed under Schedule EI (Exempt Income).
Hope this helps!
Sure I can use Sch EI. Which IT section should I mention against this entry in Sch EI, as IT section is mandatory in Sch EI.