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Clubbing spouses interest income
I am retired. I have placed some of my retirment benefits in the joint names of spouse first and me later. The bank has issued interest payment certificate in my wifes name as her name stands first in the deposits. In such case can i avoid clubbing the interest to my interest income for calculating the tax.kindly advise
Replies (2)
The clubbing provisions can be avoided if you can prove that the investments made in joint name's of you and your spouse were made our of her own personal income.
If this is done then you can always take stand that your spouse has invested her own income and interest income arising out of investments is her own income and that clubbing provisions under the Income tax act are not applicable.
Clubbing provision will be applicable for transfer of Any Asset for the benefit of the spouse.
Since the Amount invested is from your retirement benefit and you have transferred the benefits of the investment ( ie, Interest ) to your spouse clubbing provisions will be attracted.
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