Need your suggestions-how to save tax

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Nupur Sharma (Querist)

02 August 2013 One of my friends' income falls in the 30% bracket. He is also earning a lot of interest on fixed deposits. He does not want to invest in PPF (for maintaining the liquidity). What is the other opton he has to save tax on this interest income?
If he closes his FD account and transfers that money to his wife's account who then opens a fixed deposit, will that solve his purpose? His wife has no other source of income.
Will any clubbing of income rules apply here?

Please provide your suggestions

Rupesh Jain

Rupesh Jain (Expert)

02 August 2013 no interest earned by his wife include in his income. under clubbing of income provision

you can make investment u/s 80C lic, Mutul funds,
medical insurace

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Nupur Sharma

Nupur Sharma (Querist)

02 August 2013 But he has already invested in all this. How can he divert this interest income or save the tax on this other income, apart from claiming deduction under section 80C?

Rupesh Jain

Rupesh Jain (Expert)

02 August 2013 donation u/s 80G
and give gift to his relatives

if already done then no option

Message likes : 1 times

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