INCOME TAX22 Sept 2026
Gifted assets to your spouse? Know when clubbing of income rules apply, who pays tax and how to report it in ITR | Mint
Gifting money or assets to your spouse does not always move the tax to them. Under income clubbing rules, income from assets transferred without adequate consideration is taxed in the giver's hands. So if you gift ₹10 lakh and your spouse earns interest, you pay tax and report it in your income tax return (ITR) under Schedule SPI, showing their PAN.
Key Statutory Highlights
- Income from money or assets transferred to a spouse without adequate consideration is taxed in the hands of the spouse who made the transfer.
- That income must be shown in the giver's income tax return under Schedule SPI, with the other spouse's PAN reported.
- Clubbing applies only to income directly earned from the gifted asset; income earned by reinvesting that first income is the recipient's own and is not clubbed.
Actionable Advice for Taxpayers / Founders:If you have gifted money or assets to your spouse, review whether any income from them should be clubbed in your own return. Keep records of the transfer, and speak to a tax professional, because the treatment depends on your specific facts.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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