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Reg it compliance on spouse investment

25 March 2018

Team,
I have invested FDs in my spouse name. The interest earned is around 1.5 lacs. Also I invested in MFs in the spouse name.
Now, I have received IT Compliance for the above investments. Can you guide me what to be followed now, to clear the compliance - say
Option I:
To mention 'IT is not filed'. 'Not liable for Tax'. Remarks: Its gift from my Spouse savings from his income.
Further, I need to re-submit my IT return with interest received ? Or Shall I wait for further query and submit later.

Option II:
To mention IT is not filed. Submission under Process. Remarks: The interest received is less than 2 lacs and no tax to be paid.
But, TDS deducted will get refunded. !!

Please clarify.

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4 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (183849 Points)
Replied 25 March 2018

If the query is for taxability of the interest income, for which TDS has been deducted...... Option II is OK

But it the query is for source of investment....... Option I is better.....

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RAMAKRISHNAN R (INCOME TAX OFFICER) (1736 Points)
Replied 26 March 2018

however as per clubbing provision, the interest income required to be shown as income in the hands of donor....

Sunil Gavaskar (26 Points)
Replied 26 March 2018

"The Income tax Department has received information on financial transactions/activities relating to AWUPNXXXXH for Financial Year 2016-17. As per records, you do not appear to have filed Income Tax Return for Assessment Year 2017-18 (relating to FY 2016-17)." Above is the message received... Q1: So I have to re submit my IT return ? ( Clubbed income ) Also , to mention source of income. However, it's just a text box given to explain source of income. Q2: How will they validate the response, being just a plain text content ? Q3: Why MF switch txns, are not tracked in 26 AS, though FD interest is traced there?Or is there limit like if profit is more than 2 lacs, it will be traced ? Thanks !