Hi,
If husband transfer any amount to his wife’s account , as per income tax rule income generated from that amount would be taxed under husband’s income but if amount is transferred to Joint account of husband and wife (wife is primary account holder) and if that amount is invested somewhere then income generated from that amount would be taxed under husband or wife income(considering both are working).
The income generated from the joint account will be reported under the primary account holders PAN in Form 26AS and that will still be added to you, if you decide to share it 50% still both part will add to you. Only way out seems HUF.
Taxability over Husband 100%
Thank to all for their comments..so evenif wife is primary account holder but income generated from this account(Fixed deposit of transferred amount from Husband's account to joint account) would still be taxed under husband account.
Arvindkumar Maniar & Co.
Rajkot
CA
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