02 August 2013
One of my friends' income falls in the 30% bracket. He is also earning a lot of interest on fixed deposits. He does not want to invest in PPF (for maintaining the liquidity). What is the other opton he has to save tax on this interest income? If he closes his FD account and transfers that money to his wife's account who then opens a fixed deposit, will that solve his purpose? His wife has no other source of income. Will any clubbing of income rules apply here?
02 August 2013
But he has already invested in all this. How can he divert this interest income or save the tax on this other income, apart from claiming deduction under section 80C?
CAclubindia
