Income Tax Department: Every person gives some amount to his wife to meet household expenses. In such a situation, if you also give household expenses to your wife every month for every small and big work like household ration, vegetables, milk bill, paper bill, water bill, maid’s salary, then is there tax on it? Let us know what are the income tax rules for this…
Income Tax Department: Nowadays everyone uses digital payment mode for every small and big payment. Be it household vegetables or ration, people are buying it online or at least paying for it online. At the same time, there are many people who transfer money to their wife’s account for household expenses. Now, if we add up all the small and big tasks like household ration, vegetables, milk bill, paper bill, water bill, maid’s salary, then every month a good amount of money is reaching the wife’s account in the name of household expenses. Due to which the question in people’s mind is whether the wife will also have to pay tax for this?
If you also have the same question in your mind, then let us know whether you will get a notice from the Income Tax Department if you do not pay tax? Let us clear your confusion….
Will the wife have to pay tax?
If you transfer money to your wife in the name of household expenses, then no tax will be levied on the wife. This means that no notice from the Income Tax Department will come against the wife. The reason for this is that the husband’s money is being taxed and income tax cannot be imposed twice on the same money. The money given to the wife for household expenses will be considered as the husband’s earnings and will be taxed.
What are the tax rules if you invest your household expenses?
Now, if the money received by the wife from her husband for household expenses is invested somewhere, then the income earned from it will become taxable. That is, if the wife deposits the money left after household expenses in an FD or invests it in the stock market or anywhere else and earns some money from it, then it will be considered as the wife’s income. However, the wife will also get the benefit of all tax exemptions, but she will have to file ITR.
Money given to wife is a gift
If seen from the income tax law, the money given to the wife is considered a gift. The wife comes under the category of relatives, hence there is no tax on the money given to the wife. However, the husband will also not get any tax exemption on this. This means that the wife will not have to pay tax and at the same time the tax liability of the husband will remain and he will have to pay tax as per his slab.
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