Tax on income

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 April 2012 I am 47 yrs and have resigend from a PSU couple of years back.As terminal benifits I received PF of RS 25.00 lakhs and Gratutity of RS 8.00 Lakhs. This amount was recived after couple of months after I resigned.By that time I moved to a foreign land, so I asked my wife(home maker) to deposit the amount on her name.Now my questioin is :
1) the FD is two banks - is the interest taxable. Does she have to explain the source of income?
2) We are planning to Buy a house in India - can I use partly my post retirement fund(presently deposited in my wifes name) and partly from NRE account?
3)I am exploring for a cheaper loan in my place,in such case I don't want to distrub my FD on wifes name. Can I register the house on her name if the entire finance is made thru my NRE account? Does she have to explain the source of income?
4) My transcation will be completely white. In such case can I make a NEFT trasaction instead of demand draft as the seller has no problem in receving the money online.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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19 April 2012 No problem,
The interest income from the FD in India is taxable in your hand.

If you have not filed the returns then you can file for last 2 years after payment of proper tax. The banks must have deducted TDS but you are silent on this issue. Kindly checkup the same this will reduce your tax liability as you have already paid a part of the tax and if your income is taxable then the balance amount is to be paid. If it is refundable then you will get the refunds also. Beyond 2 years you can file your returns physically.

Coming to the point of investment in the name of your wife yes you can do it by showing loan to your wife and she can buy the house in her name. What ever interest you are paying can be charged from your wife.

Any6thing else you can write to ssunderagarwal@gmail.com