Whether an NRI can transfer money to spouse’s A/C in India.

POSTED BY RAJANNA K V ON October 4, 2012 4:55 pm COMMENTS (2)

Dear Sir,

Suppose if an NRI transfers money from NRE A/C to spouse’s bank A/C in India & can that money transfered be invested in spouse’s FD A/C?

Is that interest income from spouse’s FD is taxable to spouse or to NRI?

Please help in clarifying this topic.

2 replies on this article “Whether an NRI can transfer money to spouse’s A/C in India.”

  1. Biswa Singh says:

    There will be no tax incidence either on you or on your wife resulting from the transfer of funds from your NRE account to your wife’s account in India.
    However, if she were to invest the funds (open a Fixed Deposit as per information provided), the income / interest from the investment will be clubbed and taxable in your hands.

  2. As far as I understand the clubbing provisions do not make any distinction between resident and NRI (correct me someone if I am wrong) .

    So even in this case, it should be treated as husband money and the final income should be his income

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