Income tax regulations governing monetary transactions between a husband and wife and a father-son: be aware of the regulations

Income tax regulations governing monetary transactions between a husband and wife and a father-son: be aware of the regulations

Income tax regulations governing monetary transactions between a husband and wife and a father-son: be aware of the regulations

Income tax monitors all of our transactions. But may an income tax notification be given, or are cash transactions subject to any taxes? Or how much money may be exchanged in a monetary transaction between a father and son, or between you and your wife? Please share the answers with us if these are questions that are on your mind as well.

This info is helpful to you if you too conduct financial transactions between husband and wife or father and son. In actuality, we consider revenue in every transaction we do. Many individuals wonder in a case like this whether they might also obtain an income tax notification for cash transactions. Tell us how much cash your household is able to trade.

Notices from income taxes sent?

Experts in taxes state that if you give your wife money each month for domestic costs or as a gift, she will not be subject to income tax. The husband's income will be determined by both of these categories. The Income Tax Department will not send the wife a notification about this sum. However, if the wife keeps investing this money and receives income, you will have to pay taxes on the income. Put otherwise, the income from investments that is determined annually will be considered the wife's income and will be subject to taxation.

Cash transactions above Rs 20,000 may be subject to penalties under Income Tax Sections 269SS and 269T. Nonetheless, there have been several instances of relaxation.

In certain situations, there is an exception.

For instance, transactions between husband and wife, father and son, and certain close relatives are not penalized. In these circumstances, an exception has been granted. Put simply, the income tax department will not send the wife a notification for this sum. However, the wife would have to pay taxes on the income if she keeps investing this money and makes money from it.