Money gifted by working wife/soft loan to spouse

This query is : Resolved

Guest

Guest (Querist)

28 November 2017 Dear sir

My wife who is working as defense officer on retirement got tax free funds from army as part of her provident fund and gratuity etc .
Out of this she transferred 20 lacs to our joint account for FDRs where due to senior citizen to get 0.5% more interest.
Can this interest be shown only in my tax return?
In order to reduce her tax liability on total income .

Can this amount be treated as gift by her so that I have some income to sustain myself/This being tax free amount received by her , has to be clubbed in her income u/s 64 or any other such act? Since it is actually not her taxable income at all.?

Can i keep showing interest earned on amount in my tax return therefore?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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29 November 2017 This being tax free amount received by her , interest earned from it has to be clubbed in her income u/s 64.

Message likes : 1 times

Guest

Guest (Querist)

29 November 2017 Thanks Cant she open FD in my ma e as I dont earn in this fy and retired so i can take benefit?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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25 December 2017 You can't take benefit in such a case interest earned will be clubbed.

Guest

Guest (Querist)

25 December 2017 Thanks
1.kindly elaborate meaning of interest will be clubbed. Interest will go only to her or to both jointly?
2. Secondly if I show it as a sift loan form her at say 4@ interest rate to be returned after 2 years in installment along with interest?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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25 December 2017 1 Interest can go jointly but added to wife's income tax calculation.
2 loan should be at bank lending rate.

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