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    Diipesh Bhagtani

    Executive Director, Jaycee Homes

    Om Ahuja

    CEO - Residential Services, Jones Lang LaSalle India

    Subhash Lakhotia

    Tax Consultant

    Anil Rego

    Founder and CEO, Right Horizons

    Lovaii Navlakhi

    MD & Chief Financial Planner, International Money Matters

    Arnav Pandya

    Financial Planner

    Balwant Jain

    CFO, apnapaisa.com

    Suresh Sadagopan

    Certified Financial Planner, Ladder7 Financial Advisories

    Umesh Rathi

    CFPcm, Arihant Capital

    Questions & Answers

    Q

    viyankaasii: I am merchant navy nri. I want to invest in equities but not through PIS as the charges are too high which will eat away chunk of my investments. I think of investing through my wife who is a housewife. Is it legal to do like that? If so how much i can invest through her without paying income tax for her. ? Can i give money as gift so that it doesnt attracts tax? How much is the max.permissible amount i can give as gift so that she doesnt have to pay tax?

    A

    Balwant Jain

    CFO, apnapaisa.com

    As far as amount up to which you can gift to your wife is concerned there is no upper cap and all the gits are tax exempt. However any income which your wife earns on the money so gifted shall be added to your income due to applicability of clubbing provisions. In order to avoid the clubbing of income, you can give interest free loan to your wife and she can make investment in shares. Since this is not your fulltime job, I would advise you to stay away from direct investing in equity and in stead invest in equity oriented mutual funds with good historical performance and belonging to reputed fund house. Please understand that investing in equity is very risky and volatile for short term so unless your time horizon of investing is more than 7-8 years please do not invest the money in equity.

    A

    Balwant Jain

    CFO, apnapaisa.com

    Whether you can do trading in shares in future and option, being a government employee, depends on your service rules. So in case your service rules allow you to indulge in trading in derivatives, the income earned on such transactions shall be treated as normal income and will be added to your regular income like salary, interest etc.. Though tax will be deducted by your employer from your salary, you will still have to pay the tax on such income at the rate applicable to your either by way of advance tax or self assessment.. Alternatively you can disclose your income from such trading to the employer and request them to deduct higher TDS.