Is FD earnings >10k for Housewife taxable?

POSTED BY seeni_pv ON February 20, 2014 1:00 pm COMMENTS (10)

Dear Sir(s),

Please kindly clarify my below query,

Assume that i’m in a higher tax bracket. Investing in FD would attarct further tax on my total income. If i start those FD’s on my wife name who is at present a homemaker, whether the earnings >10,000 still taxable. If not, what is the maximum limit for which we do not need to pay income tax? Is it upto 2 lacs?

Please also recommend an article about step by step guide for filing tax return by an induvidual.

Thanks in advance.

Regards,

Poovannan

10 replies on this article “Is FD earnings >10k for Housewife taxable?”

  1. Capt Ranjan says:

    Dear Mr. Ashal,

    I have certain amount in my NRO savings account which I intend to transfer to my wife’s saving account and go for fix deposit in her account as FDA with NRO account has high taxation. Could you please advise the interest generated as planned above will be taxable and will my Wife require to file ITR thereafter.Also will like to know is there any legal norms to show the transfer or it is acceptable being spouse.

    Thanks
    Capt Ranjan

  2. ashalanshu says:

    Dear Seeni, a father can gift with out inviting clubbing provisions of section 64 to his kids. So for given case, if a father gifts to his married d’ter, the income ‘ll not be clubbed with father and ‘ll remain with D’ter and ‘ll be taxed under D’ter’s name.

    Thanks

    Ashal

  3. seeni_pv says:

    Dear Mr.Arun,

    Just for the sake of aruguement.

    One way of delaing it could be declaring the source of income as gift from her father who is retired. But then the earning from this income suppose to be considered in her father’s tax calculation. Complicated but possible, isn’t it?

    Regards,
    Poovannan

  4. ashalanshu says:

    Dear Arun, as the wife in question is home maker, from where ‘ll she earn that income which is supposed to deposit in cash into her account? If you like to play with the fire, do it at your own risk. 🙂

    Thanks

    Ashal

  5. akgc2 says:

    Dear Ashal
    What about if wife has PAN card and she files the individual tax returns thought the taxable income is still under the minimum taxable income ?

    Money would be invested in wife account by withdrawing the amount in Cash and then again depositing it in wife’s account.

    What are the tax implications in this case ?

    Regards
    Arun

  6. ashalanshu says:

    Dear Seeni, as the wife in question is home maker, all the Fd interest ‘ll be clubbed into husband’s income due to clubbing provisions of section 64. Read the below article for the same. Specially the comments below there.

    jagoinvestor. com/2013/03/income-tax-on-gifts-received.html

    Regarding Tax filing, please read the below article.

    jagoinvestor. com/2013/05/guide-on-income-tax-return-itr-filing-doubts.html

    Thanks

    Ashal

    1. seeni_pv says:

      Dear Mr.Ashal,

      Thanks for clarifying my doubt.

      Regard,
      Poovannan

    2. seeni_pv says:

      Dear Mr.Ashal,

      The below article has cleared all my doubts.

      https://www.jagoinvestor.com/2009/09/what-are-income-clubbing-provisions-and.html

      “The income arising from the income which is clubbed is not clubbed”

      Regards,
      Poovannan

      1. ashalanshu says:

        Dear Seeni, it’s my pleasure. Please read the coments also in the shared article. A lot of practical queries are answered there.

        Thanks

        Ashal

        1. seeni_pv says:

          Dear Mr.Ashal,

          I’m going through that right now. Thanks.

          Regards,
          Poovannan

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