-
-
-
Services
-
-
-
More
-
POSTED BY ON March 10, 2013 5:25 pm COMMENTS (6)
hello friends,
my confusion is like this:
i m a salaried person and under 10% tax bracket. TDS is deducted regularly from my salary. Two months ago my wife’s Savings plus a/c was opend at SBI. I did so because according to the bank manager auto sweep mode was not possible in my own a/c as it happens to be a salary a/c!!!! Anyway after that i have transfered upto Rs 80000 to my wife a/c just to get benefit of auto sweep mode. but recently i came across some articles on tax on gifts and confusion started.
My questions are: will i have to pay tax on the interest that is gained in my spouse’s a/c?
if yes how will it be shown in IT return? what will be proof to be given to my employer?
Suppose next time instead of transferring money to her a/c by net banking or mobile banking,
if i deposit cash manually, How will bank or IT dept know that this is a gift from her husband?
I hope my expert friends will guide me on this matter.
2021 © Jagoinvestor.com All Right Reserved
Thanks Ashal for your reply
Dear Kunal, no. The scenario you are referring to, ‘ll not be clubbed with husband’s income.
Thanks.
Ashal
Dear Dipak, no. It’s interest earned in savings plus is interest earned from FDs, hence not eligible for 10K tax free interest under section 80TTA.
Thanks
Ashal
Dear Ashal,
In continuation with above question request you to pls clarify
If wife takes X amount from husband salary for her routine expenses and also puts some money in Recurring deposit opened in her name to get an additional interest benefit of 1% on RD being a bank employee, will then also husband needs to declare the same with his employer and had to pay tax in it.
Regards,
KUNAL
Dear Deepak, i’m trying to answer your queries.
My questions are: will i have to pay tax on the interest that is gained in my spouse’s a/c?
Yes, under the clubbing provisions of section 64 of Income Tax act, the income generated from such gifted amount to your wife, ‘ll be treated as your income & ‘ll be added into you income & thus taxable in your own name.
if yes how will it be shown in IT return?
At the time of filing your ITR, please put in the interest income as income from other sources & pay due tax on it. alternatively, you may report the interest income to your employer & get the tax deducted from your salary itself.
what will be proof to be given to my employer?
No proof. Merely your declaration is ok that you are earning X amount of interest from bank FDs.
Suppose next time instead of transferring money to her a/c by net banking or mobile banking, if i deposit cash manually, How will bank or IT dept know that this is a gift from her husband?
The thing you are planning to, is tax evasion & we do not promote such activities. Do it at your own risk. We ‘ll not support you for such anti law transactions.
By the way, if the idea is just to earn extra interest, you may open one more SB account or add yourself in that wife’s account & thus you ‘ll be the ultimate owner of the interest income. As simple as that. Yes Tax ‘ll be due on you & you should pay it.
The way computerization is happening, you may do such cash deals for a while but after some time, even that ‘ll not be possible as in place of you, the Income tax people ‘ll ask your wife to show the proof of money from where she arranged it? Now how ‘ll you deal with such situation, you decide. If others’ are indulging themselves in tax evasion, it does not give license to you to do the same. Sooner or later, law ‘ll reach to all these people. I do have few real life examples with me, where with the help of technology, IT people were able to track tax evasors.
Think over it.
Thanks
Ashal
Thanks Ashal
one more thing.
Savings a/c int. upto 10000 is tax free. does this apply to savings plus too?