Tax planning
This query is : Resolved
31 December 2013
Respected Sir/Ma'am,
I'm working as a Manager(Credit) in nationalised bank for the last 10 months.Cr bal in my salary a/c comes to Rs 2.5 lac till date. TDS is deducting every month from my salary.Rs.50,000/- already invested in PPF A/c.
My question is that I'm thinking to invest my saving in Flexi RD in the name of my sister who is not a minor. For this purpose I'm transferring my cr bal to her saving A/c and then opening flexi RD in her name.She is a student & not an IT assessee.My purpose for doing so is to save tax on interest income which would otherwise be taxable in my hands in 20% bracket if I invest in my name.
Whether any clubbing provision attract to interest income. interest .
Please suggest..........
I'm working as a Manager(Credit) in nationalised bank for the last 10 months.Cr bal in my salary a/c comes to Rs 2.5 lac till date. TDS is deducting every month from my salary.Rs.50,000/- already invested in PPF A/c.
My question is that I'm thinking to invest my saving in Flexi RD in the name of my sister who is not a minor. For this purpose I'm transferring my cr bal to her saving A/c and then opening flexi RD in her name.She is a student & not an IT assessee.My purpose for doing so is to save tax on interest income which would otherwise be taxable in my hands in 20% bracket if I invest in my name.
Whether any clubbing provision attract to interest income. interest .
Please suggest..........
31 December 2013
for sister there is no clubbing provision but then in case of scrutiny if they find out this then penalty u/s 271 (1) (c) may be imposed ranging from 100 % to 300 %.
31 December 2013
Then suggest what should I do........
If I open flexi RDs in her name and then deposit amount directly from my saving A/c then what would be the tax consequences...
Also suggest the right way...
If I say I'm not doing so to save tax... I just want to make investment for her future.....
If I open flexi RDs in her name and then deposit amount directly from my saving A/c then what would be the tax consequences...
Also suggest the right way...
If I say I'm not doing so to save tax... I just want to make investment for her future.....
31 December 2013
whether for saving tax or for investment still the amount needs to be disclosed as its taxable income else you will be attempting to evade tax on income which is taxable under income tax act.
31 December 2013
If I direcly deposit in her Flexi RD from my salary A/c,then also I need to disclose interest income on her flexi RD in my taxable income as TDS is already deducting on salary income.
31 December 2013
Int income will not be clubbed.
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