Tax planning

This query is : Resolved

RAKHI CHAUDHARY (Querist)
Follow

31 December 2013 Respected Sir/Ma'am,

I'm working as a Manager(Credit) in nationalised bank for the last 10 months.Cr bal in my salary a/c comes to Rs 2.5 lac till date. TDS is deducting every month from my salary.Rs.50,000/- already invested in PPF A/c.

My question is that I'm thinking to invest my saving in Flexi RD in the name of my sister who is not a minor. For this purpose I'm transferring my cr bal to her saving A/c and then opening flexi RD in her name.She is a student & not an IT assessee.My purpose for doing so is to save tax on interest income which would otherwise be taxable in my hands in 20% bracket if I invest in my name.

Whether any clubbing provision attract to interest income. interest .
Please suggest..........

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
Follow

31 December 2013 for sister there is no clubbing provision but then in case of scrutiny if they find out this then penalty u/s 271 (1) (c) may be imposed ranging from 100 % to 300 %.

RAKHI CHAUDHARY

RAKHI CHAUDHARY (Querist)
Follow

31 December 2013 Then suggest what should I do........
If I open flexi RDs in her name and then deposit amount directly from my saving A/c then what would be the tax consequences...

Also suggest the right way...

If I say I'm not doing so to save tax... I just want to make investment for her future.....

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
Follow

31 December 2013 whether for saving tax or for investment still the amount needs to be disclosed as its taxable income else you will be attempting to evade tax on income which is taxable under income tax act.

RAKHI CHAUDHARY

RAKHI CHAUDHARY (Querist)
Follow

31 December 2013 If I direcly deposit in her Flexi RD from my salary A/c,then also I need to disclose interest income on her flexi RD in my taxable income as TDS is already deducting on salary income.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
Follow

31 December 2013 Int income will not be clubbed.

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

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

kavita goel

avulaandcopdrl 2023

divakar podaturu

Ashok Atluri

CA Reshma prabhu

Subscribe Now

Tax planning

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA