Tax on interest income of wife

Going strictly by the clubbing provisions of the IT Act, the interest from the funds transferred to your wife would be clubbed and taxable in your hands. If that be the case why bother to invest in wife's name and attract TDS in her name and the resultant complications.

In case you do need to do that, it would be extremely complicated to get credit of TDS in your nme when bank has deducted in wife's name (especially in the e-return regime, since credits are automatically taken) There is a provision in the ITR's to include the PAN of the person whose income is clubbed with yours. But whether this be will enough to claim and activate the credit under that PAN needs to be seen. Any readers who have had this experience may share them.