Interest earned on bank deposits

Save Share

This query is : Resolved

Anil (Querist)

17 June 2008 A individual who is a salaried employee opens joint SB A/c with his wife who has no income of her own. His wife's name appears as the first A/c holder. Both of them individually can operate the account.

The question is - should interest earned on such deposit be taxed in the hands of husband?

If yes, kindly provide me with Income Tax section reference.

Thanks.

CA Hemant T Dewani

CA Hemant T Dewani (Expert)

17 June 2008 u/s 64(1A) of the income tax act if any money given to wife without consideration then income of that money is taxable in the hands of husband in your case first name is wifes & husband is deposited money in the saving a/c so it is added in the income of husband

CA Anand Sarda

CA Anand Sarda (Expert)

17 June 2008 As per clubbing provisions of income tax, spouse income will be clubbed with the person income if the income of the spouse is not earned bcoz of her personal talent, or ability.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now