Jaipur: Finance Minister Pranab Mukherjee will present the Budget on March 16. A hotelier from Jaipur Prithvi Singh from Jaipur requests the Fiance Minister to remove the tax on clubbable income provision from the Income Tax Act.
It's a week short of Prithvi and Pratibha Singh's 16th wedding anniversary and Prithvi wants to gift his wife something special. She wishes for a part of heritage property to do something of her own.
Pratibha wanted a corner of their palace, which she can rent out to a friend to open a boutique in.
"This is our 16th anniversary, so I thought I'd make it special and while I usually gift my wife jewellery, or some clothes or a holiday, this time I want to give her a part of the property she likes very much, so she can do something she wishes to.
But after a meeting with his Chartered Accountant Prithvi had to rethink. He'll have to pay tax on the rent his wife will get due to a provision in the Income Tax Act called clubbable income. Income arising from any asset gifted to one's spouse is clubbed with the income of the person making the gift. So Prithvi will have to pay tax on the rent earned from the property he's gifting to his wife.
Prithvi said, "I request Government of India to not include the income from the gift to spouse in my income tax so that a loving husband like me can give something unique to his wife. Finance Minister, please consider this."