Income from FD

This query is : Resolved

Sonia Verma (Querist)
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07 November 2009 Fact1: Assessee & his wife...both are holding PAN Cards
Fact2: Assessee gives 2lacs to wife, via cheque.
Fact3: Wife gets an FD made in a bank and enjoys Interest frm FD.

Question: Income from FD which wife is earning, to be clubbed with Assessee or not??
THANKS

Rajkumar Maheshwari

Rajkumar Maheshwari (Expert)
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07 November 2009 In this case Income from FD will be filed only in wife return. because

Interest from FD [ which is in the name of Wife, in this case ] is receiving by wife, then why we should clubbed with husband Income.

Satpal Singh

Satpal Singh (Expert)
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07 November 2009 Hi Rajkumar,

I think section 64(1)(iv) is applicable. As per the provision of this section if an individul transfers any asset other than house property to his /her spouse, the income from such an asset shall be included in the total income of the transferor.

According to me it is taxbale in the hands of husband.

CA.SHAHZAD SAYYED

CA.SHAHZAD SAYYED (Expert)
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07 November 2009 Dear Sonia
Mr. Satpal is right, it is clubbed in hands of husband because it is transfer of amount without or inadequate concideration