One reply on this article “saving tax through gifting”

1. Ashal Jauhari says:

   February 20, 2013 at 12:04 am

   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.

   Thanks

   Ashal

   Reply

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