Save Rs 499 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Clubbing of Income and SFT-005 (of 26AS)

362 views

Save Share

Join Us Follow Us Add as Source

AR

RETIRED

57 Points Posted on 27 November 2022

Dear Experts,

I intend to transfer a sum of Rs. 15 lacs, to my wife’s bank account, to enable her to open fixed deposits. This amount is realized from the sales of company shares held on my name. We both are retired Senior Citizen Tax Payers.

Will this be considered as clubbing of income?
As this transaction amount will be included in my wife’s 26AS, under SFT-005 of Part E, does she have to do anything about this?

Thanks in advance for your valuable opinion and time.

Replies (3)

Quick Summary

A senior citizen taxpayer plans to transfer Rs. 15 lacs from share sales to his wife's account to open fixed deposits. He seeks clarification on whether this constitutes clubbing of income and if his wife needs to take any action, as the transaction will appear under SFT-005 in her 26AS. Experts advise that clubbing of income will likely apply to the FD interest earned by the wife.