One of my friend's DH wants to buy a piece of land on her name. They live abroad and they plan to buy the piece of land in India. Her DH wants to gift her the money so she can buy in her name. Amount involved is high value so I enquired around based on her request and found out that if the amount is more than Rs.50,000/-, even if it is a DH gifting to his own wife, without any consideration, entire amount will be considered taxable in his hands though she need not pay any tax. However, it seems her DH thinks he need not pay any tax as gifting any amount to spouse is tax free in India. Is his understanding correct? Does anyone here have any experience of such gifting? Obviously my friend is super excited and can't wait to register on her name I will be more than happy for her if I am wrong in thinking that they have to pay tax as it will be substantial amount. They don't live here and I don't want her to get in trouble. TIA.
if the amount is earned outside india and he is an NRI, he does not get taxed anyway because India does not tax foreign income. If he is trying to save on tax abroad , then no idea. No need of gifting money, husband can pay and register property in wife's name. if they are submitting tax returns in India , wife could be questioned and she can tell her husband bought in her name.
Hi Do you know if anyone has recently bought in partners name? Buying bank account and registering name shouldnt it be the same? TIA
you already know that the right thing to do is not consult lay persons , but a qualified tax consultant/accountant who is familiar with indian tax laws as it applies to NRIs. This is a complex area and you should not decide based on what you hear from 'friends n famly'. Pay for professional consultation and hire them to discuss (your friend should, i mean).