February 19, 2013 11:25 pm
can tax be saved by gifting cash/jewellery to wife? or buying two wheeler in name of child(major)?
Dear Sonu, the plain answer is no. By gifting your own money to your wife or purchasing vehicle for your child (major), you can not save on your tax liability. After paying your due taxes, you are free to use your capital in any manner you want to but interestingly if you gift your wife some amount (or even your minor child) & she earns any income from it, it ‘ll be clubbed with your income & taxed as per your own slab rate. This falls under the clubbing provisions of section 64 of Income Tax Act.
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