Tax experts believe that the wife does not become responsible for Income Tax when one is depositing money in wife's account for household expenses every month. In simple language, the wife will not get any notice from the Income Tax Department for this amount. There are various other types of income that are exempt under various sections of the income tax act. There is a schedule called Exempt Income (EI) in the tax forms where you need to give details of exempt income. Exempt income of minor children which has to be clubbed in the income tax return of either of the parents also needs to be reported in the income tax return.

Source: dna December 26, 2020 17:15 UTC