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TAX FREE RETIREMENT MONEY TRANSFERRED TO SPOUSE HAVING NO INCOME SOURCE

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(Querist)
26 September 2021 I have transferred some money from my retirement benefits PF and Gratuity to my wife who has no source of income and invested it in FD in her name. It fetches interest income of around 80 thousand. I don't want to club this income to my income to avoid increase in my tax liability and instead prefer ITR filing for my wife separately. Is it ok?
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Dhirajlal Rambhia

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Dhirajlal Rambhia (Expert)
26 September 2021 Because of clubbing provision, the interest income is to be declared in your ITR.
OR You cannot declare the income in her ITR.
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CA Raj Doshi

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CA Raj Doshi (Expert)
26 September 2021 Show the transfer of funds to spouse as interest free loan and clubbing provisions will not get triggered.



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Dhirajlal Rambhia

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Dhirajlal Rambhia (Expert)
11 October 2021 ITO may club the interest in Husband's hand as wife earning income from interest free loan given by husband.

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