Question: Can I Invest In FD In My Wife’S Name?

Can I transfer shares to my wife?

You’re absolutely spot-on in thinking that a transfer of the shares to your wife would do the job.

Gifts between spouses and civil partners are normally free of any capital gains tax.

While you can transfer shares into a tax-free account, such as an Isa or pension, your wife cannot do the same with gifted shares..

Can husband deposit in wife PPF?

First of all, both husband and wife may open PPF accounts in their name only if both of them have their own sources of income. … He or she may open accounts for his/her minor children, but total investments in PPF against a single PAN cannot exceed the statutory limit, which is now Rs 1,50,000 in a financial year.

What is the procedure for transfer of shares?

Basic Procedure for Transfer of Share in a Public CompanyThe deed of Share transfer in form SH-4 must be duly executed both by the transferor and the transferee.The share transfer deed must bear stamps according to the Indian Stamp Act, and Stamp Duty must be given in the State concerned.More items…•

Can you have 2 demat accounts?

There are pros and cons in each broker and in case you want more, well you can go ahead and open two demat/trading accounts. … At the same time, you cannot have two Demat accounts with the same stockbroker. You are allowed to open multiple demat accounts with different stockbrokers.

Can gift be given to wife?

Gifts up to Rs 50,000 per annum are exempt from tax in India. In addition, gifts from specific relatives like parents, spouse and siblings are also exempt from tax. … Tax on gifts in India falls under the purview of the Income Tax Act as there is no specific gift tax after the Gift Tax Act, 1958 was repealed in 1998.

Can I open FD in my mother’s name?

You can open fixed deposits in your parents’ name with this amount. If your parents are in a lower tax slab, then the tax they will pay on the interest on the FD will be less than what you would have had to pay if you had put the same amount as a FD in your own name.

How do I stop clubbing of income from husband and wife?

To avoid the clubbing of income of the husband and wife it is therefore recommended that the husband should not make any gift to the wife of any income producing assets so also the wife should avoid making gift to her husband so as to prevent clubbing of income.

Can NRI give money to wife?

The specified relatives list in terms of Section 56 of the Income Tax Act is fairly wide. It includes brothers and sisters, and their spouses. Gifts to this category will not attract any tax.

Can we transfer demat account from one bank to another?

While transfer of shares from one demat to another can be done online, the more popular method is the manual transfer of shares from one depository to another. There are broadly two types of transfer viz. … When you do an off-market transfer, you must use the Debit Instruction Slip (DIS) booklet provided by your DP.

What is clubbing of income in income tax?

Clubbing of income means including the income of any other person in Assessee’s total income. … For Example, if a husband diverts some part of his income to his wife to reduce his tax burden. Then, such transferred income of a wife is added and taxed as income of husband only and not his wife.

What is a clubbing?

Clubbing is an abnormality where the ends of the fingers and toes enlarge and the nails curve; often it is related to an inadequate oxygen-rich blood supply. However, it can be hereditary and completely normal.

Can I transfer my demat account to my wife?

Yes, you can transfer shares from any account to your account by giving off-market delivery instructions slip to holders DP. There are some minimum charges to transfer the shares.

What is the clubbing of income?

The situation in which the income of another person is included in the income of the taxpayer is called clubbing of income. For example: If the income of your spouse is included in your total income and also taxed in your hand, then this is known as clubbing of income.

Can I claim my mother in law as a dependent?

You may claim your mother-in-law as a dependent on your return if she meets the four tests for a qualifying relative: Not a qualifying child – Since she is your mother-in-law, she is not your child.

Can a son give money to his mother?

A. An individual assessee can gift any amount to his/her mother without involving any tax liability in the hands of the donor or the donee. There is no limit up to which gift can be given to the mother by a son or a daughter.

Can I transfer money to my wife’s account in India?

Yes, it may sound strange but you can save taxes by transferring money to your wife’s account! … However, if she saves some amount from the money gifted by you for personal expenses and deposits the same in bank and earns interest on the same , then such interest income will be clubbed with your income.

Can I pay salary to my wife in India?

The amount paid by you to your wife can be considered as gift which shall not attract income tax under the provisions of Income-Tax Act, 1961. However, under clubbing provisions of this Act, any income accrued to her on such amounts would be clubbed in your income and you will have to pay tax on that.

Can stocks be transferred to another person?

If you own stocks, you have the legal right to transfer ownership to someone else. There are no penalties or rules prohibiting the transfer of assets. You do not have to sell the shares either. … When you transfer stock shares, tax implications may arise for the donor and the receiver.

Can shares be transferred?

Shares can be transferred from a shareholder to another person (either a new or existing shareholder). … Typically, shares are transferred to introduce a new shareholder. So long as a company has enough shares, it’s possible to transfer shares in a limited company any time after incorporation.

How do I transfer shares to my husband?

Matthew Orr from stockbroker Killik & Co, says: Get stock transfer deeds – one for each company in which you have holdings – from the companies’ registrars or from a broker or legal stationer. Fill in and send back to the company registrars – they will do the transfer for you free of charge.

Can I show my parents LIC for tax exemption?

3. Tax exemptions on LIC policies under section 80D: Under section 80D tax exemption is allowed for people who deposit a certain amount of money with the LIC for the support of a handicapped person. … If the parents are senior citizens, then up to Rs20,000 is permitted for the tax deduction.