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Fund Transfer to spouce and It amount made Fixed deposit as name of His wifes s accounting

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Chandrakant Parmar

35 Points Posted on 26 February 2023

sir , A individual is transferred sum amount to his wife account ( wife is housewife no worked so her no income) and deposited in as Fixed deposit.plwade give effect this transaction and income tax sec 64? this income which hand it is gift?

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Quick Summary

When an individual transfers funds to their spouse, who has no independent income, and this money is used to create a fixed deposit, the interest earned is typically clubbed with the transferor's income for tax purposes. This means the income tax liability will fall on the husband's tax file. No specific accounting records are usually required for such transactions.