I am living abroad and i transfer money to my NRE account from abroad and then i transfer the money from NRE to my wife’s savings account .she is using this money to trade in equity market, her total trading profit + salary < 2.5 lack .
so below are my questions
1.DO she need to pay income tax for the amount which i transferred.?
2. do she need to file return if yes which ITR form to be used ?
3.do she need to show the amount which i transferred to her in her tax return ?
In short yes. There’s an upper limit to how much a family member can receive as gift or other utility fund. Some CA can advice better regarding NRI case.
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less than 2 lack . within an year .can you pls suggest any good online platform to consult CA
Lac & not lack !!
Lack means something short of.
Anyways, try discussing on some online CA portal before falling trap to any CA who will demand good fees from you!!
Google it & try different websites.
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There is no such limit. Gift from non-relatives is tax free up to 50,000 per year. Gift from family members (any amount) is totally tax free.
No, but clubbing provisions may apply on profits generated from trading. Do consult a CA
You mean a father can choose not to pay income tax by giving a big amount as gift to his son.
Father has to pay tax on his income. Son does not need to pay tax on the gift.
The OP’s question was whether his wife needs to pay tax on the amount gifted to her.
What if I send money from another country into my own account (Obviously it’s not a gift), Do I need to pay taxes ie Income Tax or any other tax?
Do I need to pay Capital Gain Tax (15%) If my short-term earning (less than 1 yr holding) through MFs and Equities is less than 2.5 Lakh? (I have read an article stated Capital Gain Tax is waived up to 2.5 Lakh profit in a fiscal year, I cant claim its authenticity)
Lac?? Means
Lac = LAKH
If your gross total income excluding deductions is less than 2.5 lakhs, you don’t have to file returns or pay taxes in India. If you are a tax resident in the U.S., you have to include this income along with your other U.S. income and pay taxes there since US taxes worldwide income of citizens/residents.
International taxation is complex. Suggest you consult a tax expert.