Who is liable to pay tax on interest earned from FD, which was created by wife using PIN money received from Husband?
CA J.Alamelu lakshmi (Chartered Accountant) (852 Points)
30 July 2014Who is liable to pay tax on interest earned from FD, which was created by wife using PIN money received from Husband?
Anubhav
(Chartered Accountant)
(429 Points)
Replied 30 July 2014
Hi
As per Sec 64(1)(iv) this income will be taxed in the hands of transferor. In this case husband.
AJH & CO.
9868729930
CA J.Alamelu lakshmi
(Chartered Accountant)
(852 Points)
Replied 30 July 2014
But in the case of " R.B.N.J Naidu Vs CIT (1956) 29 ITR 194 (Nag) and R.Dalmia Vs. CIT (1982) 133 ITR 169 (Delhi) " , it says income from investment out of pin money cannot be clubbed.
Kishor Bhat
(CA final CS executive (from Bangalore))
(1881 Points)
Replied 30 July 2014
Hitesh Khanna
(Accounting & Finance Taxation Company Law Audit )
(839 Points)
Replied 30 July 2014
1. Income from Investment out of PIN money will be taxable in the hands of Wife
Reksin P A
(Audit Assistant)
(27 Points)
Replied 30 July 2014
Fenil Shah
(Audit & Tax Executive)
(402 Points)
Replied 30 July 2014
Pin money received by wife from her husband is not treated as an income in the hands of wife & so if she saves from Pin money & invests the same, the income from Investment will be taxed in the hands of wife & no clubbing provisions will apply here.
Rupesh Soni
(Taxation Consultant & CA final student)
(493 Points)
Replied 30 July 2014
Rohit Kapoor
(CA Final)
(543 Points)
Replied 30 July 2014
ncome from Investment out of PIN money will not attact clubbing provisions.
Nikhil
(student)
(27 Points)
Replied 30 July 2014
vishesh
(student)
(21 Points)
Replied 31 July 2014
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