Income tax query on national savings certificate

I am the only earning member in my family and my wife is a housewife. Now my thought is to open a NSC (National Savings Certificate) in my wife's name in a Post Office. The capital amount will be transferred to her Post Office savings account from my account and then she will apply for NSC.

Now my question is the capital amount that I will transfer to her account before opening the NSC, will that amount be considered as her income and will that be assessed for income tax?

Please give me proper guidance.

Thanks

Replies (6)

" Now my question is the capital amount that I will transfer to her account before opening the NSC, will that amount be considered as her income and will that be assessed for income tax?"

No ....... it will be treated either as loan or gift... depending upon your books of accounts..

hello anyone there to guide me?
thank you Dhirajlal. now please clarify me will that be gift if I transfer from my savings account to her savings account? will that be taxable for her?
both credit and debit accounts are savings account . will the transfer be gift or taxable ?
thank you sir, both the credit and debit accounts are savings account ? what will be the transaction treated as ? gift or loan?
thank you sir, both the credit and debit accounts are savings account ? what will be the transaction treated as ? gift or loan?

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