Tax Liability on Transfer of money from NRE account to wife saving bank account ?

POSTED BY SAINI-RP ON January 28, 2014 11:39 am ONE COMMENT

I am working in K.S.A from last six month and I have a NRE bank account so I want know If any amount transfer in my NRE a/c to my wife saving a/c. What will be income tax liability of me and my wife and how much limit of transfer amount in one finance year . My wife is a housewife.

One reply on this article “Tax Liability on Transfer of money from NRE account to wife saving bank account ?”

  1. ashalanshu says:

    Dear Saini, there is no tax liability on transferred amount. Tax liability ‘ll arise if there is any income from the transferred amount. For example, you transferred 5L Rs. to wife’s account. No problem. But if this 5L Rs. is invested in a Bank FD and there is interest earning say 45000 Rs. in the year, this 45000 Rs. ‘ll be taxable for you under the clubbing provisions of section 64 of Income Tax of India.

    Thanks

    Ashal

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