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Senior citizen's spouse interest income clubbing rule

Tax queries 224 views 3 replies

Samrat Sharma

3 Points Joined January 2018

Hello Everyone,

Please guide me regarding interest clubbing rule for senior citizen-

Husband is retired pensioner. Suppose, he is providing cheque to his wife(Non working) and from that amount she earns interest which is below the taxable limit, then whether that interest income will be clubbed with Husband's income?

Thanks and Regards,

Samrat

Replies (3)

Anurag lohiya

Bara bazar

262 Points Joined June 2013

Yes. It shall be deemed to be income of Husband ( Spouse) as per law.
i.e. Any income generated from the gift given by the asessee to his/her spouse arised in the hands of spouse shall be deemed to be income of assessee as per section 64(1A).

Samrat Sharma

3 Points Joined January 2018

Even though spouse is pensioner?

sonu sharma

job

53 Points Joined January 2012

Yes, even though it should be clubbed. However if wife had paid same amount in this year or last year then it may be treated as a loan. That will completely depend upon the facts of the case.