Loan to wife and interest income husband income or wife income

This discussion explores the tax implications when a husband loans money to his wife, who then invests it in a Senior Citizen Saving Scheme (SCSS). The key question is whether the interest earned on the SCSS investment is taxable in the husband's or wife's hands, especially when the loan is interest-free and later repaid. The query also touches upon the taxability of further income generated by reinvesting the initial interest.