Can I add my wife as co-applicant in my Bank account for FD to save tax ?

POSTED BY nitin1001 ON August 5, 2014 6:35 pm COMMENTS (3)

Hi Friends,

I want to open a FD with my wife name, just to save TDS amount since she is a housewife and don’t have any income.

But she don’t have any bank account so I am planning to add her as a co-applicant in my existing SBI account for this reason.

So my understanding is after adding her as a co-applicant and opening FD with her name, TDS is not applicable and will get full interest without any deductions. Is my above understanding is correct?

 

3 replies on this article “Can I add my wife as co-applicant in my Bank account for FD to save tax ?”

  1. nitin1001 says:
    August 8, 2014 at 11:03 am

    Thank you Hemanth.

    How about opening a new account with wife name as primary applicant for FD?
    Is TDS is still applicable for this case since she has no income?

    Reply
  2. nsabhyankar says:
    August 6, 2014 at 2:05 pm

    what about the clubbing provisions under section 64?

    if the wife has no other income and the FD is made out of funds gifted by the husband, the interest income will be clubbed with the husband’s income. the husband will have to pay tax on the interest.

    Reply
  3. Hemanth Chandra says:
    August 5, 2014 at 10:45 pm

    No, if you add her as co-applicant also, it will be considered as your income only and you have to pay tax…..

    If you gift your wife some money, that money will be not-taxable for you wife and she can make it as an FD. The interest on that income will be taxable. As your wife is not having any other income and if the interest is < 2.5 L, she don't have to pay tax on it.

    For that, your wife has to have a bank account.

    Reply

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