INCOME TAX27 Sept 2026
Money gifted to spouse: Can income earned from it be taxed in your hands? Tax expert explains | Mint
Gifting money to your spouse is not taxed as a gift in their hands. But income earned from that gifted money gets clubbed with your income, says tax expert Nishant Shanker. If your spouse reinvests that interest, the income from the reinvestment is taxed in the recipient's hands. So keep clear records of the original gift and each level of income.
Key Statutory Highlights
- A gift of money to a spouse is generally not taxable as a gift in the recipient's hands.
- Under Section 99(1)(a)(ii) of the Income-Tax Act, 2025, income earned from the gifted amount is generally taxable in the donor's hands.
- Income earned by reinvesting that first-level income is generally taxable in the recipient's hands.
Actionable Advice for Taxpayers / Founders:Keep the original gifted amount and each level of income earned from it in separate, clearly labelled records, and check with a qualified tax professional before deciding whose return that income should go into.
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
Share: