Clubbing of income

Tax queries 462 views 3 replies

shailesh

Service

227 Points Posted on 19 July 2013

Dear Members I have a tax query. I have invested some funds in bank FD in my wife's name and some funds in my name. And so far, I am clubbing her interest in my return as a clubbing of income.

Now last year she got a job & so form 16 from employer.

What to do about her FD interest income?

should i clubbed in my return or in her return?

My query is, will my wife's interest income clubbed to my income? What if i file separate return for my wife and myself, will it still be clubbed? Note that the money invested (FD) is earned by husband and not wife. I appreciate your expert opinion. Regards

Replies (3)

work is worship

Service

2728 Points Posted on 20 July 2013

The interest income has to be clubbed with income of husband as the interest income is gained from the income invested from the earnings of the husband. The source of income is from husbands income so it has to be clubbed with husbands income ..

Swami Ayyappa Nuli

TAX ADVISOR & CONSULTANT AT G.S.T SUVIDH

1372 Points Posted on 21 July 2013

Here u will have two aspects

1)Transfer of income with out Transfer of Asset

2)Transfer of Asset for inadequate consideration

Here u invested in investments in your wifes name..please inform the source of cash.if it is out of income in which you tax paid,no clubbing provisions will not apply otherwise u are liable to pay tax on interst arise there on

shailesh

Service

227 Points Posted on 21 July 2013

The source of Income is compansation recieved from Govt on complusery land aquisition by Govt , the share recieved on my name, i Invested in FD in my as well as her name.