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?
Please provide your suggestions
CAclubindia
