banner_ad

Need your suggestions- how to save tax?

993 views 2 replies

One of my friends' income falls in the 30% bracket. He is also earning a lot of interest on fixed deposits. He does not want to invest in PPF (for maintaining the liquidity). What is the other opton he has to save tax on this interest income?


If he closes his FD account and transfers that money to his wife's account who then opens a fixed deposit, will that solve his purpose? His wife has no other source of income.
Will any clubbing of income rules apply here?

Please provide your suggestions

Replies (2)

Nupurji,

If one gift any amount to his wife,then the income received on the same is clubbed in Husband's income and accordingly taxed in the hand of husband.

Why don't your friend go for tax saver Mutual fund investment.By doing so,He can save tax as well as can get a good return in long term.

Thanks & Regards,

M/s S.R.Associates

Cell:9685595760

e-mail:srassociates0713 @ gmail.com

https://www.facebook.com/pages/SRAssociates/600829063295496

PPF is ideal for retirement but the investment continues upto 15 years. 

National saving certificate offers good interest around 8.4% pa, no upper limit, lock-in period is 5 years. The interest is of course taxable. 

PO MIS is another one offering decent interest. Lock-in period is 5 years, and interest is taxable. Invest upto 4.5 lacs single or 9 lacs joint. 

If money is paid to wife and she invests, the income earned from it shall be chargeable to husband. 

 


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
26 May 2026
Senior Accountant cum purchase Manager

Vardhaman Group of India

Pimpri Chinchwad

CA Inter

View Details
Company
22 May 2026
Audit assistant

Displayandbeyond

Mumbai

CA

View Details
Company
14 May 2026
Financial Analyst - Remote Finance Expert

HiringBridge

Ahmedabad

CA

View Details
Company
29 May 2026
Accounts assistant

Shubh Consultancy

Mumbai

Graduate (Any)

View Details
Company
19 May 2026
Fundraising Expert

MentorsWorld Ventures Private Limited

Ahmedabad

Others

View Details
Company
01 June 2026
Audit, Taxation & Compliance Executive

R P S K & Associates

Nashik

CA Inter

View Details
Company
19 May 2026
Accountant

ca kunjan

Mumbai

CA Inter

View Details
Company
16 May 2026
Account & Audit Asst

RAHUL KHANDEBHARAD & ASSOCIATES

Nashik

B.Com

View Details