Bank interest in jt account of husband and wife

Dear Sir,

You cannot break the interest income in two halves. The whole of the interest income will be chargeable in your hands

YOU ARE LIABLE TO PAY INCOME TAX ON WHOLE INTEREST.

Inspite of making two halves of the interest amount it will be better to  open another account of your "Better Half".  

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The days are not away, when the gifts received by the wife of a Govt. Employees may be clubbed with the income of employee or may be treated as unexplained money in the hands of the account holder.

Departmental action may follow after passing the  "Lokpal" only.

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