Taxation on FD

This discussion explores the tax implications of Fixed Deposit (FD) interest earned in India when the funds are sent by a husband living abroad to his wife in India. Experts clarify that the interest income is generally taxable in the hands of the FD holder. However, if the FD is in the wife's name, clubbing provisions may apply, potentially taxing the income in the husband's hands, even if he is a non-resident taxpayer. The query further questions the tax rate and the specific individual liable for tax in such scenarios.