Under Section 56(2)(x) of the Income Tax Act, 1961, gifts received from a spouse are exempt from tax. However, CAs explain that doing so doesn't automatically reduce your tax liability. This is because of clubbing provisions, under which the income earned from the gifted money or assets is added back to your income and gets taxed in your hands.
short by
Garima Garg /
06:53 pm on
28 Nov