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Q. I want to invest about 5 lakhs in government bonds such as NSC or NHAI. If I invest in the name of my wife, would she need to pay any taxes initially. This 5 lakhs is from my savings and I am an in

A. Gift from husband to wife is not chargeable to tax. However, under the clubbing provisions of the Income Tax Act, 1961, income arising from direct or indirect transfer of assets to an assessee’s spouse without adequate consideration will be assessed in the hands of the transferring spouse. The interest arising from the government bonds invested by you in your spouse’s name will be taxable in your hands and not in your wife’s.

A.Under Section 139(1) of the Income Tax Act, an individual has to file ITR if the total income exceeds the maximum amount not chargeable to tax and the assessee satisfies any of the following conditions, holds or is a beneficial owner/beneficiary of an asset located outside India or has signing authority in any account held outside India, deposits more than one crore rupees in one or more current accounts, has incurred more than two lakh rupees for foreign travel for himself or others and has incurred more than one lakh rupees towards electricity. Kindly check if any of these conditions apply to you. If not, as stated by you your total income is less than the exemption limit, you are not required to file the ITR for the relevant assessment year. Further, ITR can be filed if you want to claim refund of the TDS deducted from the dividend earned from mutual fund.

A. Income received by consultants/contract employees are taxable under the head “Profits and Gains from Business or Profession”. Under this head, the income received for rendering services to your clients minus the expenses incurred by you for rendering such services will be the taxable income. You are to also maintain the books of accounts for such profession run by you. You may opt for presumptive basis of computing the profits/gains as per Section 44ADA and your income is deemed to be 50% or the net income (income less expenses) whichever is higher. Further, you can avail the benefit of this section only up to ₹50 lakh gross income per assessment year. Your income must fall under the specified professions as provided under Section 44AA such as legal, medical, engineering, architectural profession or the profession of accountancy or technical consultancy or interior decoration or professions as notified. The relevant ITR which is to be filed by you is ITR-4.