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.