Taxability of interest on rd with bank

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 July 2013 i am a salaried employee and my wife is a housewife.my wife do not has PAN.
i have a joint account in bank with my wife as primary account holder which is not linked with my salary account.My kids saving account are linked to this account.some Recurring Deposits are also linked to this account in the same bank.i am regularly transfering some of my savings to this account.
whether interest accrued on RDs are taxable under my income or otherwise.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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28 July 2013 It can be made taxable in your hands, though you may leave the idea to include the income in your return. Reason for taxable in your hand - the amount has been directly tfd. from your salary account.
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You should withdraw certain additional amount in cash and give it in the hands of your wife. She will no spend it. She will deposit the amount in RDs, you may not be taxed so directly.
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