Assistant Manager @ EY
955 Points
Joined November 2007
Hi,
Any income earned out of asset is stil taxable in the hands of transferre.
In the given case, the interest income is taxable in the hands of wife. Only the money which was deposited in the name of wife is clubbed as income in the hands of husband.
Interest earned out of money deposited by husband is taxable in the hands of Wife only.
Thanks,
Suri