IT for FD for House wifes

Tax queries 2409 views 12 replies

My wife is a house wife. She has some FD in Banks. The interest will be some thousands per year. For FD the interest is taxable. When she is not having any income, how the tax will be calculated and deteted at the source. Bank peoples are not clear and not explain in detail.

Replies (12)

if the interest income is received is less than the basic exemption  limit then your wife will not be liable for paying any tax. You must ask the bank officials for FORM 15 and fill it so they will not deduct any tax. However if they have already deducted tax you have to file a income tax return for claiming refund.

yaa , praveen is right.

yes i m also satisfied with wat praveen had said ...

 

Regards,

Varun Makhija

YES,SUBMITED FORM15 FOR NON DEUCTION OF TDS.

If your wife is a housewife and doesnt have any income it seems that you have invested money earned by you in her name.

If this is the case then clubbing provisions are attracted.The interest income earned will be added to your income and then you will have to file return.

You will have to pay tax on your income + interest and take credit for the tds deducted by bank if any

Mr. Nilay,

Thanks for your kind advice. When others said to submit form 15G, you are suspecting that the source of my wife's income for FD. Good.

I have following reasons to prove. The money what she got is gift from me (my income was already taxed at source). Then, she also holds some shares which gives some income to her. now, she has some income from her shares and they are not to the limit to tax. Also, the FD interest is not more than Rs. 20,000/-. So, I feel that she can submit FORM 15G and get exempted from the IT detection at source. If it correct please advice.

With lot of thanks

Kannan

hi kannan,

When the total income recieved from all the heads are less than the exemption limit. then you can submit form 15 for non deduction of Tax.

Regards

Vijay Kumar

Dear Kanan& Vijay ,U are right & As the total income from all sources is less than taxable.She can file form 15 G to avoid  tax deduction at source ,Filing return & get refund from Income Tax.

Thanks uday kiran i was not aware of Form 15H.

Regards

Vijay Kumar

Dear Kannan,Nilay has got a point.When a gift is given to the spouse,clubbing provisions will come to play.One way out could be to treat the amount given as loan given.

 Hi Kannan,

here in your case, Amount gifted by your is not chargeable to tax under the head "Income from Other sources" as the amount given by spouse is not chargeable. Sec  56 (v) and 56 (vi).

But the income arising from the such asset will be chargeable to tax in the hands of the hands of the spouse as per Sec 64.

 

 

 Hi Kannan,

here in your case, Amount gifted by your is not chargeable to tax under the head "Income from Other sources" as the amount given by spouse is not chargeable. Sec  56 (v) and 56 (vi).

But the income arising from the such asset will be chargeable to tax in the hands of the hands of the spouse as per Sec 64.

 

 


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