Please confirm my understanding on the following cases.
Case - A
1. I transfer my money to my father's account
1. I transfer my money to my father's account
2. He does Fixed Deposit of that money / puts it in trading
3. The interest earned / profit made on that amount will be added to my father's income for Income Tax calculation purpose.
4. When required, I took my money back (without interest) from his account. It is then my money for my investment / housing finance.
Case - B
1. I transfer my money to my wife's account
1. I transfer my money to my wife's account
2. She does Fixed Deposit of that money / puts it in trading
3. The interest earned / profit made on that amount will be added to my income instead of my wife's income for Income Tax calculation purpose as per IT section 64.
Your help is really appreciated.
Regards,
Ashish
CAclubindia
