Provision to tax gifted assets was made under the assumption that wives, daughter-in-law would normally not have independent taxable income.
New Delhi: Women and Child Development Minister Maneka Gandhi has asked Finance Minister Piyush Goyal to suitably amend the Income-Tax Act so that assets gifted to wives and daughter-in-laws are not taxed.
She has asked for the amendment of the Section 64 of the legislation, according to which if a man gifts an asset to his wife and the asset results in some income to the wife, the income will be added to the taxable income of the man.
Gandhi said that due to the provision, husbands and father-in-law are apprehensive to transfer assets to women in their families because they fear that income accruing from the asset will ultimately become a burden on them.
The provision to tax the gifted assets was originally formulated in 1960s under the assumption that wives and daughter-in-law would normally not have any independent taxable income.
"However, today with women leaving an indelible mark in every field, the Act seems to have an adverse effect," she added.
"I have urged @PiyushGoyal ji to consider amending the #IncomeTax Act so that the income accruing from the gifted asset gets taxed at the hands of wives/daughter-in-law (sic)," Gandhi tweeted.