Mr. X is a retired person. He receives pension of Rs.2,50,0000 p.a. On retirement he has received Rs. 20,00,000 (Rs. 20 lacs) from his employer, out of which he transfers Rs. 10,00,000 (Rs. 10 lacs) to his spouse by executing gift deed and she invests the same in Fixed Deposit, and earns interest on the same. His spouse does not have any other income other than interest on this FD.
Now my question is, whom this interest on FD will be chargeable to tax ?
1. Taxable to the spouse of Mr. X or
2. Taxable to Mr. X (vide clubbing provision)
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