Spouse income in fixed deposits for multiple years

Following is my scenerio:

Every month I transfer money e.g., 30000 to my spouse from my income (Post TDS). After accumalation of 1Lakh, I put a fixed deposit in her name.

In a finacial year (2012-13), the amount I transfer is 3,36,000, will earn intrest of 8000. 

Who will be liable to pay taxes for the amount of 8000?
----------------------

The same pattern continues for next FY (2013-14) also. Now I will have two FD's by the end of FY 2013-14 :

1. (FY 2012-13) 336000 + 8000 -> 24000

2. (FY 2013-14) 336000 -> 8000

who is liable to pay the tax on 24000?
---------------------------

The same pattern continues for next FY (2014-15) also. Now I will have two FD's by the end of FY 2013-14 :

1. (FY 2013-14) 336000 + 24000 + 8000 + 336000 = 700000 -> 56000
3. (FY 2013-14) 336000 -> 8000

who is liable to pay the tax on 56000?

Thanks 

T Srivash

 

 

Replies (1)

Whatever interest is earned on FD will be clubbed with your income but the interest earned on interest  will be the income of your wife.

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