26 Sep 2025 | 3 Mins Read
Tax implications and clubbing provisions for spouse gratuity gifts
Flipitmoney
The husband's service gratuity is taxed in his hands, above his exemption, and transferring it to wife is considered a gift in her hands. The gifted amount is not taxable but any income generated from it will be clubbed with the husband's income. Clubbing provisions may not apply if the wife doesn't generate income from the funds.