Claim audit · FY 2026-27
“Gift money to your spouse and invest in their name”
The condition that decides it
The gift itself is exempt (relative, s.56), but all income the gifted money earns is clubbed straight back into YOUR hands u/s 64(1)(iv). The only clean route is a genuine documented loan at market interest — and the interest you receive is taxable.
What the department sees
Both spouses' AIS, bank transfer trail
Data the Income-tax Department already receives automatically — the reel doesn't mention this part.
The real math
The reel implies that gifting ₹10,00,000 to a spouse removes future investment income from the donor’s tax return. The gift itself can be exempt as a relative under section 56(2)(x), so the transfer tax is ₹0. But if the spouse invests the ₹10,00,000 and earns 8%, the income is ₹10,00,000 × 8% = ₹80,000. Section 64(1)(iv) clubs that ₹80,000 back into the donor’s hands, so the claimed donor reduction is ₹80,000 − ₹80,000 = ₹0. The spouse’s investment may still be legally held in the spouse’s name, but clubbing controls the income attribution. A genuine documented loan at market interest is a different route; the interest received by the donor is taxable. The statute produces an exempt transfer with clubbed income, not a simple income-shifting deduction.
Questions people actually ask
Sections: 56(2)(x), 64(1)(iv) · We audit claims, not creators. Reviewed by Harun Raaj & Associates, Chartered Accountants · All audited claims