Fixed deposit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 July 2015 I have received about 10 lacs from my PPF,I am retired and getting pension.My wife is also income tax payee .I want to deposit this 10 lacs as fixed deposit in my wife,s name ,TDS will be deducted. Can I do it?

CA. Sunil Gokhale

CA. Sunil Gokhale (Expert)
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07 July 2015 Yes, you can but you should be aware of the consequences. The interest will be taxable in your hands. However, the interest on the interest earned will be taxable in her hands. So while filing the return you will have to segregate the income from the original deposit and the interest on the interest earned every year.