Moneylife has been getting many queries regarding the implications of investment in the name of spouse and children. In many families, the wife is a home-maker and the husband is in the highest tax bracket. There is a temptation to pass on assets and invest in the wife’s name, to save taxes. The subject is tricky as tax laws do not want you to evade taxes by transferring your assets. Income tax has, what are called, ‘clubbing’ provisions which add the income of the wife with that of the husband.
Not many are aware of the details of these provisions. What happens to the interest or dividend generated from investments made in the name of the wife? Is it yours or it is now the spouse’s money? It gets even more complicated if re-investment of such income generates additional interest or dividend. Raj Pradhan explains it all after getting the feedback from various chartered accountants (CAs). Read the Cover Story to get a hang of this tricky issue.
The enormous corruption of the UPA government headed by a clean Dr Manmohan Singh is in the news, again, after the court has summed Dr Singh to give evidence. Sucheta, in her Different Strokes column, assesses Dr Singh’s role as prime minister from 2004 to 2014 and as finance minister from 1991 to 1996 and explains how he stood by and allowed the plunder of national resources, even if he did not touch a penny of the loot. In her Crosshairs column, Sucheta writes on how the Reserve Bank of India has created a level playing field for credit bureaus, at last; but more needs to be done at the consumers’ end to resolve several issues.
Looking to buy bank stocks? R Balakrishnan outlines what you should look out for before investing in this sector. One more excellent practical guide to buying stocks by Bala.
It’s been a year already since we launched Moneylife Smart Savers (savers.moneylife.in
), a one-stop source for your personal finance needs. We are updating the website adding more features. If you aren’t a member, you are missing out on being part of a community where you can, at last, be safe as well as prosperous.