Bank FDs- transferring between spouses

This discussion explores the possibility of transferring Fixed Deposits (FDs) between spouses to minimise tax on interest income, especially when one spouse has significantly lower or no income. While transferring FDs as a gift is generally permissible, it's crucial to be aware of 'clubbing provisions' which might mean the interest is still taxed in the hands of the original owner if the sole purpose is tax avoidance. The advice suggests documenting transfers, especially if funds were previously moved, and considering other tax-saving options like Tax Saver FDs and deductions for medical expenses.