I have opened a Demat as well as Saving's account in my wife's name. These are Joint a/c where she is the first holder. She is a house wife and has no source of income. Accordingly I am clubbing any interest or Capital Gain thus earned in my Tax return and showing the details under schedule SPI & EI (wherever applicable ). She is not filing any return. I am would like to know a) if it is still required to file separate IT return by her and b) whether she can get any Notice by IT deptt for not filing a return based on their tracking of high value transaction.........Ranjan

I have opened a Demat as well as Saving's account in my wife's name. These are Joint a/c where she is the first holder. She is a house wife and has no source of income. Accordingly I am clubbing any interest or Capital Gain thus earned in my Tax return and showing the details under schedule SPI & EI (wherever applicable ). She is not filing any return. I am would like to know a) if it is still required to file separate IT return by her and b) whether she can get any Notice by IT deptt for not filing a return based on their tracking of high value transaction.........Ranjan more

Helpful Tax, Investments and Retirement Feb 16

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Nakkeeran Singaravelu (Technical Consultant, President Community Service)

Dear mr Ranjan Sahi, How long you are having the dmat a/c and the transaction you made. It is better to get a PAN in your wife name. All the money through which you bought shares can be accounted as gift /or interest free loan to her.That will be the source of income for her. If the capital gain (selling of shares within one year of purchase, at higher cost than the purchase price - is capital gain) not exceeding the taxable income,there is no tax liability.If the shares are sold after one year the capital gain is not taxed as per the extant of current IT rules. Many while in service(PSU or Government) are hesitant to show this in the income or property return filed with the company. Similarly it is always better to file IT return for the spouse accounting for gifts and other income, which will be useful in many ways. If it warrants Tax,it is better to pay.After all we are paying from what one earns above the limits. It is better to advice all youngsters to file IT return for self and spouse The youngsters shall plan for the retirement corps at their early years. Don't bother about pension. The pension is the money you account for additional corpus more

Feb 20

Venkateswara Rao Pamidimarthi

if taxable income is less than 250000/-, need not to file return, but demat A/C. is her name first & you are not taking a/c. if capital gain is not exceeding slab, no need. but transactions are heavy in bank, better to file, otherwise there is chance of getting a notice for IT dept. more

Feb 17

Indria Daman

I would agree with Prof Umesh Kumar. more

Feb 17

Umesh Kumar (Professor)

Separate return by her will be better for following reasons 1. Lower or no income tax depending upon the income from interest, capital gains etc. Further she can invest under 80C, 80D etc. to bring taxable income to zero income tax, if income is not more than 5-6 Lac per annum. 2. For high value transaction she can get notice of income tax department. In case of any scrutiny, your account is also liable for scrutiny, in case of one return. 3. Even if you are not directly filing ITR, any CA may charge about Rs 1000/-, which may off set the additional tax that may be paying by clubbing her income to your account. 4. Please get a PAN for her too. more

Feb 17

MAHENDER SIDDI (RETIRED PRINCIPAL,GOVT. POLYTECNIC OF GOVT. OF TELANGANA)

as per my knowledge up to annual income RS5lacs of individual, one need not file IT return. more

Feb 17

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