kamal sachdeva (manager accounts) (29 Points)
14 August 2012Hi!!! I hv some Fixed Deposit in my name on which TDS is being deducted. I file my ITR nd If I add my salary i hv to pay tax. my question is If I transfer these fdr or gift these fdr to my wife, she is housewife, so that if tds is being deducted she can file the return and claim refund since she doesn;t hv any other income.
Can I do this? and is the right way legally?
Thanks nd rgds
Kamal
neeraj
(CA)
(930 Points)
Replied 14 August 2012
If u transffer FDR to ur wife,its interest will be clubbed in ur income only.
Hence there will bw no pft. to show gift to wife.
CA. Subhash Dangi
(Chartered Accountant)
(1784 Points)
Replied 14 August 2012
Hi Kamal,
TDS is deducted in your name and same is credited to IT authority under your PAN. It is not possible to transfer your TDS to your wife name since it is not allowable as per the law.
As long as FD and TDS on interest are in your name, the benefit of TDS can not be shifted to any other person. Hence U alone is taxable on such interest on FD.
FD may be kept in your wife name to avoid income tax but whatever FD going to transfer to your wife is also taxable as gift in your wife hands.
For tax planning, better to pay tax on interest on FD in you name namely.
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
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