17 June 2008
A individual who is a salaried employee opens joint SB A/c with his wife who has no income of her own. His wife's name appears as the first A/c holder. Both of them individually can operate the account.
The question is - should interest earned on such deposit be taxed in the hands of husband?
If yes, kindly provide me with Income Tax section reference.
17 June 2008
u/s 64(1A) of the income tax act if any money given to wife without consideration then income of that money is taxable in the hands of husband in your case first name is wifes & husband is deposited money in the saving a/c so it is added in the income of husband
17 June 2008
As per clubbing provisions of income tax, spouse income will be clubbed with the person income if the income of the spouse is not earned bcoz of her personal talent, or ability.
CAclubindia
