Wife fixed deposit

Interest earned from fixed deposit will be taxed in hand of you or your wife, any one as per selection , depends by u, your wife and/or both party.

It will be taxed in your hands only...

Tax will be collected from the owner of the FD (in whose name the FD is made), in your case it is your wife. The tax collected will be paid to the IT dept by the bank and the bank in turn will issue a certificate to you for the payment made, for your reference while filing the IT returns or you can submit the Form 15H in which case the bank will not deduct the tax on interest paid but you will have to pay the tax yourself when you file the returns.

As per the clubbing provision of Income Tax, the interest earned on FD would be in your hand that is from where the source of FD has been provided.

Interest income will be clubbed with your income, however interest on interest will not be clubbed

It will be clubbed in your income as per clubbing provision.

the interest earned will be clubbed in your income as per section 64 as it is earned from the asset transfered to your spouse. If the interest exceeds the specified limits, the bank will deduct TDS and the form 16A will be issued in the name of the depositor(ie. your wife). Since the TDS will be credited in your wife's PAN, you can not take the credit. Hence you have to pay tax for the same and your wife can claim refund.

Well said

As per sec 64(1)(iV), when an individual transfers an asset to his/her spouse without adequate consideration then the income from such asset shall be deemed to be the income of taxpayer who has transferred the asset.

So in your case interest income from FD will be included in your income and not in your wife's income.

Hii Everyone,

plz tell me about deduction on FD,  who can avail deduction under section 80C if Husband invested  in FD in the name of Wife and wife has no income in the PY