Hi all,
Mr. A is government employee. His income is taxable. Out of that taxable income he transferred ₹ 300000 to his spouse.
Spouse is house wife. She invested that ₹ 3,00,000 in fixed deposit. She earned interest ₹ 20,000.
Now my query is
1. In hands of wife which income is taxable 320000 or 20000. If 20000 is taxable, under which section ₹ 3,00,000 is not taxable.
Or
2. Clubbing provisions if any applicable to Mr. A
3,00,000 is taxable in the hands of Mr. X.
And interest income on FDR earned by spouse is below the maximum amount not chargeable to tax, hence not chargeable to tax.
CAclubindia
