We answer a viewer question on the tax treatment of income from trading by spouse.
Edited Highlights
0:11 In this Tax Q&A video, we take up a question from Vaibhav Panchal
0:39 Vaibhav writes that he has given Rs 50,000 to his wife for trading in her recently opened demat account
0:50 Vaibhav wants to know if she earns Rs 5 lakh, what would be the tax treatment? Would there be an audit?
0:59 If there is no transfer of the asset or its ownership, then it is an income under business and profession
1:13 Whatever money was spent in trying to earn the income is deducted and then it is taxed
1:24 Who pays the tax depends on whether you have gifted the money to your wife or loaned it
1:31 If you have gifted the money, your wife's earnings get clubbed with yours and you pay the tax
1:55 If you have given a loan, it is your wife who pays the tax
2:13 No tax audit here, since it starts from Rs 1 crore
