Clubbing of income

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 July 2014 >A husband has credited an amount into his wife's bank account. Now on that husand's amount, wife earns interest income. >Wife has not any other income other than the interest on such amount given by her husband.

If the wife files separate return this year for the first time, and shows her such interest income in her return ,(so that she can also avail exemption limit and her husband's income also can be within exemption limit), then is it in accordance with rules and act /law ?

Will not this interest income be clubbed into husand's income ?

Deepti Asawa

Deepti Asawa (Expert)
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12 July 2014 Yes, interest income will be clubbed into husband income.

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

13 July 2014 >If the husband /wife shows this interest income or the principal amount in a particular manner...then can it be possible that the interest income may not be clubbed ?

>Is there any such particular manner ?
> What can be done ?
Should the wife show the principal amount as loan from husband and pay interest on it ?
or > Any other remedy ...so that the interest income may not be clubbed in husband's income ?
And can be eligible to be shown as wife's own interest income ?

>And being within the limits of rules /act /law.

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Nikhil Kaushik

Nikhil Kaushik (Expert)
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13 July 2014 in this case, its is simple that the interest income shall be clubbed unless the husband has given this money to the wife as loan

Querist : Anonymous

Querist : Anonymous (Querist)

14 July 2014 Deepti madam and Kaushik sir.....Thank you for ur advise and guidance .
But ..Sir/Madam,
if it is like that...then .......... (1) Will it be compulsory to show the transaction that the wife has given interest to husband on the loan ?

I mean, if the husband does not take any interest from his wife , then will it be all ok ? Or ..will he has to take interest income from wife and show it in his return compulsarily ?

If yes...then,

(2) How much % of interest is to be shown ?

(3) Is this loan-interest to be shown by crediting such interest amount in husband's bank account by cheque ?
Or Cash given transaction is enough ?

(4) If wife pays to her husand, the loan-interest of f.y. 2013-14, in the f.y. 2014-15 together with the interest of f.y.2014-15 itself , then will the interest income of wife for f.y. 2013-14 be clubbed ? into the husand's income for f.y. 2013-14 ?

Please...provide guidance.