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Hi , i got sms for my wife pan number , stating that either to file ITR or submit online response under e-campaign tab on compliance portal , ( under Non -filing of Return in in e campaign list ) . Though i transacted above exemption limits to her account , need to be filed if its her own income, but as i transferred ( from spouse as gift ) thought no need to file ITR and left to file ITR . So what to do now ?
Even not created user id for her pan number till now ,
1.so have to create id and just give reason as " no need to file ITR as transaction from spouse , so treating as gift ?
2.Wil be there ready made reasons / options like this gift from spouse or plain space there to give my own reason there ?
3.Or i have to go through CA for this also ?
4.If i file / give reason this time , have to file / give reason every year ?
5. got sms 2 day back , is dec 31 st last date for this also , or 30 days from this sms received date , ie 26 jan 23 ?

I filed ITR and paid tax for previous years , through CA ,
Thanks in advance ,
@Jason_Castelino , @San78 , @Quicko

Hello @fno_Q,

ITR filing is mandatory for individuals as per section 139(1) if the gross income in a year is more than the basic exemption limit.

If you had gifted money to your spouse and not paid tax on such money transferred then it will be clubbed in your hands and have to be reported in your ITR.

So either you’ll have to file ITR for your spouse after creating an account on the income tax website or provide feedback for the transaction reported where you can select a reason from the dropdown that Income relates to a different PAN.

It is not so that if you provide feedback to AIS in one year then every year it’s required unless there is a mismatch in the information reported in AIS and ITR or ITR is not filed.

You can read more about it here: AIS (Annual Information Statement) - Learn by Quicko

The due date to file belated or revised ITR for AY 2022-23 is 31st December 2022.

Hope this helps!

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Hi , @Quicko , sorry im not explained in detail , i cancelled my FD and transfered the same amount through cheque to her a/c to take FD in her name and not opened any demat a/c and traded in her name , ( i just reduced my tax liability ) .

Only two things are certain once you are born my friend
First: Taxes
Second: Death.

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Hello @fno_Q,

As per the Income Tax Act, any income transferred for the purpose of reduction of tax liability is taxed in the hands of the transferor. Hence in your case, any income earned from funds transferred as FD shall be clubbed in your hands only.

You can read more about it here:Clubbing of Income as per Section of Income Tax Act - Learn by Quicko

Thanks for your replies @Quicko , but still not convinced , i transferred by feb. starting , till that i paid taxes for that capital , trading transactions and accured interest till fd closure , and filed itr and paid tax for every year , then why again clubbing tax second time ? may be 2 months interest accured in her ac after transfer , that interest would also be negligible below basic exemption limit , or something im missing between ?!Thanks .

Hello @fno_Q,

Yes rightly said by you, the interest accrued after the transfer of FD till the end of the financial year shall be clubbed with your income since it was transferred without adequate consideration. The interest accrued to you has already been taxed so won’t be taxed twice.

In your spouse’s case, it is advisable to file an ITR and report the whole amount received by her as a gift from a relative and hence exempt from taxation post that you can submit feedback on the Compliance portal as well.

Hope this clarifies!

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@Quicko , Thanks a lot for your quick responses . :smiley:

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