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Tax Query

nagaraja k (Financial Advisory) (47 Points)

14 July 2010

This is regarding the tax on the interest earned. A person likes to open an account under Senior Citizen Savings Scheme 2004. He wants to open a joint account, his wife being the first account holder and he a joint account holder. Wife is not employed nor has any income of her own. The account has to opened by transferring the amount from husbands account. (There is a provision in the scheme that both the spouses can open SCSS account with a deposit of Rs.15 lakhs each.). The interest has to go to husband's account. How should the income be treated? Can it form a part of husband's income for that financial year? Please clarify.

Nagaraja K

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7 Replies

Amir (Learner) (4016 Points)
Replied 14 July 2010

Dear Sir,

Yes since the money to open the account was given by Husband, any interest income arising on that deposit shall be clubbed with the income of Husband for the purposes of Income Tax.

So in ur case - The husband's return will include interest on both the accounts.

2 Like

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JITENDRA KUMAR DHINGRA (Executive) (93 Points)
Replied 14 July 2010

Hi Dear,

The Provision of Sec 64 Shall be applicable on the income arise on amount invested on SCSS. You should take care about the Provisions.

Regards

Jitendra

1 Like

Shudhanshu Agrawal (Business) (2570 Points)
Replied 14 July 2010

Yeah agree with Amir. Income shall be clubbed with husband income u/s 64(1)(vii).

2 Like

CA DEWANGAN DEEPAK (CHARTERED ACCOUNTANT) (88 Points)
Replied 15 July 2010

Yes wife income will be clubbed in this case because deposited money received from husband. and sec-64 will apply.

1 Like

Payal Gupta (article-trainee) (69 Points)
Replied 15 July 2010

Originally posted by : Amir
	Dear Sir, Yes since the money to open the account was given by Husband, any interest income arising on that deposit shall be clubbed with the income of Husband for the purposes of Income Tax. So in ur case - The husband's return will include interest on both the accounts.