URGENT... PLS ADVICE

I am in a peculiar situation. Please advice me with your inputs.

When I was a NRI 7 years ago I gifted 30 Lakhs to my wife (house wife) which she invested in tax exempted RBI Bonds 100% on her sole name. She received 15 Lakh rupees tax exempted interest.

Upon maturity the principal and interest both was deposited back again to our bank account which is on joint name of myself and my wife.

But then during the course my situation totally changed. Due to mental illness & health constraints I am not able to work and now I am taking rest at home. Which means that myself & my wife are both unemployed and totally depending on the interest income. For convenience we have funds parked in our Joint Account.

I have the following questions:

1) My wife can gift back (portion or total) of original amount (i.e. 30 Lakhs) which I gifted her 6 years ago?

I want to keep the tax-exempted interest (15 Lacs) with my wife and keep portion or full original amount (30 Lacs) on my name so that she can develop her own corpus funds so that she is also happy. Any Interest she earns on this interest income will be hers and taxable in her hands. Is that true? Pls Advice

2) Can she gift to me the tax exempted RBI bond interest income received by her (i.e. 15 Lakhs) ?

3) As I am not doing good in my health, I want FD on my name as a future security. Because of my ill-health I am worried about my security now. Kindly advice me with respect to income tax.

4) Once that amount gifted to wife, whether the gift can be taken back? I read in one site that gifts cannot be taken back one gifted to wife. Is that true? If that is the case then can I take back the full or portion of Principal and Interest amount? Pls Advice.

5) Taking back the original gifted amount and leaving the Interest income with my wife is permissible by Income Tax? Because we both need not pay tax on this by doing this way. Is not this a tax evasion? Pls advice.

6) Please suggest me the best way to save tax and also I get a sort of financial security from the total capital.

7) Summary is given below.

Now the total corpus is parked in Joint Savings Account. Out of which 51.72 Lacs was gifted to her 7 years ago by me when we both were in USA as NRIs. 26.19 Lacs is the RBI interest income which is totally tax exempt earned by my wife. Though the money was mine, RBI bond was totally on her name with single mode of operation.



A) Total amount originally gifted to her 7 years ago when we both were in USA as NRIs=51.72 Lacs INR

B) Total Tax Exempt interest income earned by my wife from RBI Bonds (totally on her name)= 26.19 Lacs

C) of (B) above, interest income clubbed in my hands as Donor = 21.54 Lacs

D) of (B) above, cumulative interest earned by my wife as Donee (income on income calculated by MS Excel)= 4.65 Lacs.

Income earned on the Interest Income will be taxed in my wife hands. This is also Tax Exempt.



All the amount is parked in Joint Savings Account.



I am now unemployed and shall remain same for next 2 years as I got a bypass surgery. My wife is also unemployed as she is a house wife. As we both are UNEMPLOYED, We both want to live on the interest earned by the above corpus for some time.



Please advice me how to split the total corpus so that we both can show the interest income that is going to be earned in future as the minimum taxable income.