Doubt

377 views 4 replies
If I earn 1200000 pa in which rs 350000 make fixed deposite name of my wife which is non earning then what is the tax treatment of interest income which is earn through fd...
Replies (4)

Hii Tripti

As Fixed Deposite is from your(Husband) Income it will be clubbed in the hands of husband Income as per Clubbing of income Provision

Originally posted by : tripti
If I earn 1200000 pa in which rs 350000 make fixed deposite name of my wife which is non earning then what is the tax treatment of interest income which is earn through fd...

Money is Invested in Shares or Fixed Deposits or other Assets–

The shares may have been purchased in your wife’s name or fixed deposits made in her account – but the income from such fixed deposits or gains from the wife’s shares transactions shall be clubbed with your income. As per clubbing provisions of Income Tax, this is considered as your own income and taxed at slab ratesapplicable to you. Even if there are capital losses from sale, those get added too.

 

You are making Fixed Deposits from your income and wife is in non taxable bracket. It means she is exempt from income tax and income on F.D. will be exempt in her hands. But the provisions of IT Act are clear regarding clubbing of income. That means income which is exempt in her hands made out of your assets will be clubbed in your income. You are left with no option but to pay the tax.
Originally posted by : CA. Neha Gupta
You are making Fixed Deposits from your income and wife is in non taxable bracket. It means she is exempt from income tax and income on F.D. will be exempt in her hands. But the provisions of IT Act are clear regarding clubbing of income. That means income which is exempt in her hands made out of your assets will be clubbed in your income. You are left with no option but to pay the tax.

Thank You Ma`am (CA Neha Gupta) for ur Support to my answer...


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
12 June 2026
Accounts & Taxation Executive

Winshine Financial Services

Mumbai

CA Inter

View Details
Company
24 June 2026
Chartered Accountant - GST & Direct Tax

APL

Mumbai

CA

View Details
Company
27 May 2026
Audit Assitant

Virender K Gupta and Co

New Delhi

B.Com

View Details
Company
ARTICLESHIP 18 June 2026
Article Assistance

RB KESHRI & CO.

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 08 June 2026
Internal & Taxation Article

O P Bagla & Co LLP

New Delhi

CA Inter

View Details
Company
01 June 2026
Audit, Taxation & Compliance Executive

R P S K & Associates

Nashik

CA Inter

View Details
Company
22 June 2026
Finance Manager- Chartered Accountant

Triveni Turbine Limited

Bengaluru

CA

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details