'Household amount is not taxable'

'Household amount is not taxable'

Historic decision of the Income Tax Appellate Tribunal  

New Delhi / Correspondent

The amount deposited by the housewife for household expenses cannot be considered as her income. Therefore, thus amount up to Rs 2.5 lakh will not be taxable, the Income Tax Appellate Tribunal has ruled. The tribunal said the decision would be a guide in all cases involving housewives' income.

Uma Agarwal, a housewife from Gwalior, showed an income of Rs. 1 lakh 30 thousand 810 in her 2016-17 statement. However, after the demonetization, she deposited Rs 2 lakh 11,500 in her bank account. The  Income Tax Department to inquire into the matter and asked her to provide an explanation for the amount. Agarwal clarified that it was the amount paid by her husband, children and relatives for house expenses. This explanation was not accepted by the CIT (Appeal). So Agarwal rushed to ITAT. The tribunal sided with Agarwal, stating that the housewife's income would not be taken into account by the money received from family members for household expenses.

The contribution of a housewife in taking care of the family is invaluable. The decision we have made will serve as a guideline for each of these cases. The tribunal has clarified that up to Rs 2.5 lakh deposited in a bank by housewives cannot be declared taxable.

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