SFT fixed deposit

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If you have a fixed deposit in your name and your wife's, and you're paying tax on the interest, it's important to clarify whose funds were used to make the deposit. If the funds belonged to your wife, the interest should ideally be declared in her Income Tax Return (ITR). You may also need to inform the bank to declare the interest income under the PAN of the person whose funds were used for the FD, ensuring accurate reporting in TDS returns and preventing potential issues with the tax department.

kiran virpura

kiran virpura (Querist)
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24 July 2021 Fixed deposits are in my name and second name is of my wife. Tax paid by me on Interest income. My wife is not liable for tax payment however such deposits are reported under SFT in 26AS of both of us. Any action required to be taken by my wife.

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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25 July 2021 No need to do anything.

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kiran virpura

kiran virpura (Querist)
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25 July 2021 Thank you very much

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CA PARTH SHAH

CA PARTH SHAH (Expert)
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26 July 2021 Better check from whose fund, FD has been made. If the funds are used of your wife, better disclose interest in her ITR. After checking this, intimate bank to declare interest income only in the pan of the of assessee in the tds return whose funds have been used for making the FD

This will avoid any notice from department in future

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