New Delhi: Husbands and fathers-in-law are apprehensive of transferring assets to women in their families because they fear that income accruing from the assets will ultimately become a tax burden on them, women and child development minister Maneka Gandhi has said. She has flagged a clause in Section 64 of the Income Tax Act in which income is clubbed in the name of the person who transfers the income.
Maneka Gandhi has asked Finance Minister Piyush Goyal to suitably amend the Income Tax Act so that assets gifted to wives and daughters-in-law are not taxed.
It has come to fore through several requests that husbands and fathers-in-law are apprehensive to transfer assets to women in their families because they fear that income accruing from the asset will ultimately become a burden on them. 4/5@PiyushGoyalOffc @FinMinIndia
— Maneka Gandhi (@Manekagandhibjp) July 9, 2018
The provision was originally formulated in 1960s under the assumption that wives and daughter-in-law would normally not have any independent taxable income. However, today with women leaving an indelible mark in every field, the Act seems to have an adverse effect. 3/5
— Maneka Gandhi (@Manekagandhibjp) July 9, 2018
According to provisions of Section 64 of the I-T Act, if a husband gifts an asset to his wife and the asset results in some income to the wife, the income is added to the taxable income of the man.
The provision to tax the gifted assets was originally formulated in the 1960s under the assumption that wives and daughters-in-law would normally not have any independent taxable income. “However, today with women leaving an indelible mark in every field, the Act seems to have an adverse effect,” Maneka Gandhi added.
As a society, the onus of ensuring economic empowerment of our women lies on each of us. Following several requests from women, especially wives & daughters-in-law, I have urged Finance Minister Shri. @PiyushGoyal ji to examine & suitably amend Section 64 of #Income Tax Act. 1/5
— Maneka Gandhi (@Manekagandhibjp) July 9, 2018
She said she had urged the finance ministry to consider amending the Income Tax Act so that the income accruing from the gifted asset was taxed in the hands of wives or daughters-in law and not in the hands of the transferor.