Senior Citizen ~ Husband 75 yers Central Govt Pensioner , Breaks 40 lacs of his Savings in FD to gives to Wife for her financial Security as He is suffering from Cancer Dementia and Parkinson . He Cannot manage his finances any more as wished to transfer all his savings to Wife. Account so that in case anythings happens to him family dont face finance issues
Wife who is 71 years old invest this amount FDs to generate income and manage expenses
Question
Do the wife who files income tax of 4 lacs every year should disclose this 40 lacs in her ITR under exempt income . In her AIS there is an SFT005 entry for purchase of Time deposits of this 40 lacs so this raises a doubt on where this money came from
Husband will club this interest in his ITR
What will be the best way to report this , so as to avoid IT Notice as both are senior citizens and any notice they wont be able to handle and manage
CAclubindia
