I am 63 years old retired person going to live on interest income now and have opened an SCSS account depositing the maximum amount of Rs 15 Lacs.
My wife is also 60 years now and she is going to open SCSS account in her name depositing maximum amount of Ra 15 Lacs from our Joint Bank account in which my PAN Card is attached. She has applied for a PAN card and will attach it to her SCSS account.
As per clubbing provision the interest on SCSS account of my wife may be treated as my income but I would like to avoid it and following questions are my questions:
Is transferring Rs 15 Lacs to wife as compensation for performing household duties for 39 years of married life an "adequate consideration"?
If it is "adequate consideration" are we liable to pay any tax immediately on Rs 15 Lacs transferred to her.
If it NOT an "adequate consideration" I know that the interest income is to be clubbed with my income but she could re-invest the interest earned and the subsequent interest would be treated as her income.
Kamalakar
CAclubindia
