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Agriculture income - fd

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Sandeep

Junior Functional Consultant

42 Points Posted on 18 October 2013

Hi all

I have a strange query. I have an Agriculture land of 25 Acres. Now Every Year i am getting an Agriculture Income of 6,00,000.

Now this Money is not taxable (Since Agriculture Income). Now i keep this Money Every year in Fixed Deposit, For 5 Years i do the same thing. So it comes to 5Yrs * 6,00,000 = 30,00,000 after the 5th Year.

Now i keep this 30L in FD on my Wife's name (HouseWife).

1) So is this Income Taxable? Since Agriculture Income.

2) So who will b Taxed for this, Since i have given this money to my Wife, and she put it as FD.

3) What are the other means i can avoid Income Tax filing.

Hope i am clear if not please mention i will explain in detail.

Thanks

Replies (1)

Chakravarthi K

kchakravarthi2008@gmail.com

73 Points Posted on 19 October 2013

INT., EARNED ON FD IS TAXABLE INCOME. IF IT CORSSES THE TAXABLE LIMIT THEN YOU HAVE TO PAY TAX. IN THAT PROCEDURE YOU CAN CLAIM RS.1,00,000/- AS SAVINGS U/S.80C. AS YOU ARE MAKING FD FOR 5 YEARS. SO EVEN AFTER THIS 80C IF YOUR NET INCOME CROSSES TAXABLE LIMIT THEN YOU HAVE TO PAY. {( FOR INT., INCOME YOU HAVE TO CALCULATE ALL THE INT., AMOUNTS I.,E., INT., ON EARLIER DEPOSITS ALSO) + ANY OTHER INCOME}