Yes, you can pay rent to wife or parents to claim Indian HRA (House Rent Allowance) tax exemption. Paid rent is counted as spouse or parent income. You can pretty well pay the rent to your spouse and claim the HRA tax exemption for your income.

Can wife gift money to husband in India?

Gifts up to Rs 50,000 per annum are exempt from tax in India. In addition, gifts from specific relatives like parents, spouse and siblings are also exempt from tax. Tax on gifts in India falls under the purview of the Income Tax Act as there is no specific gift tax after the Gift Tax Act, 1958 was repealed in 1998.

Can I give rent to my father?

You can pay rent to your parents if you are staying with your parents. This should be done by transferring the money (rent) to their bank account or pay via a cheque. This way you will be able to claim your HRA deduction properly. Since rent is paid to owners, the property must be owned by your parents.

Does a husband have share in wife’s property?

1)during wife lifetime husband does not have share in her property . Upon her intestate demise, the property shall first devolve on her own legal heirs first and then only if there are no class I legal heirs, the property may pass on to the class II legal heirs. Her husband and children are her class I legal heirs.

Can a husband transfer income to his wife?

So, if you are planning to transfer any of your income or any asset to your spouse to avoid the associate tax on such income, hold on. There are certain specified situations when the income of both the husband as well as the wife would be clubbed and would be taxed as one entity.

Can a spouse be included in an individual income tax?

As per this section in computing the income of any individual, there shall be included all such income as arises directly or indirectly to the spouse of an individual from assets transferred directly or indirectly to the spouse by the individual without adequate consideration.

How is clubbing of income of husband and wife tax planning?

There are certain situations when the income of both the husband as well as the wife would be clubbed together and there would be only one income-tax return and one assessee under the Income Tax Law. The main provision relating to clubbing of the income of husband and wife is contained in Section 64 of the Income Tax Act, 1961.

Can a husband and wife file separate tax returns?

Under the Income Tax Law both husband as well as the wife would be entitled to have their separate sources of income, separate funds of their own and so consequently separate income tax files for both of them would be a reality.