Income tax
atul
(Querist) 19 February 2014
This query is : Resolved
I am a salaried person.I have deposited money as FD in my name but interest earned is more than 10000 rupees.can I deposit money in the form of FD in my wife's name?will she get the exemption on interest earned on FD under income Tax rule?
R.V.RAO
(Expert) 20 February 2014
bank must have deducted TDS@10% on the annual interest if you have not submitted form 15G(if u r not senior citizen,or else form 15H for senior citizen).If u gave form 15G, means your annual taxable income is below Rs2 lakhs.
check if TDS is already debited to your savings bank account,while crediting the annual/ monthly/qrt/halfyearly interest.
for the new financial year starting from 1st April ,at least you give form 15 G in 1 st week of april.
for the current financial year also you give now form 15 G(if your annual taxable income is below the taxable limit) and request bank not to deduct TDS for financial year 2013-14.
take ack.always from bank,as proof of submitting form 15 G/15H.
AS FAR AS YOUR WIFE IS CONCERNED IF HER ANNUAL TAXABLE INCOME IS BELOW RS.2 LAKHS,YOU CAN GIVE FORM 15 G AND ASK BANK NOT TO DEDUCT TDS.
BUT IF the F.D is in your name at present ,how do you transfer in her name?
Either wait till F.D maturity period or else for any premature closure , a lesser /applicable rate of interest will apply which u need to accept.
some men put wife name first and husband name as second in FD application and give form 15G signed by her,if her annual income is below tax limit.this helps in no TDS deduction,and since income tax liability always falls on first holder,husband can safely avoid tax.
make it a point always, and ensure that between a husband and wife , all their movable and immovable assets be always kept in joint names,as a matter of abundant caution, due to life's uncertainities.
Rajendra K Goyal
(Expert) 20 February 2014
Are you income Tax payee and submit your return.
You can claim refund from IT department by filing the return if tax is wrongly deducted.
If not IT payee submit 15(G) or 15(H) as the case may be.
CA. Brijesh Baranwal
(Expert) 20 February 2014
In that case, interest income of your wife will be clubbed with your income under clubbing provisions.
T. Kalaiselvan, Advocate
(Expert) 20 February 2014
I agree with the experts opinion, you may follow the advise rendered by expert Mr. Goyal.
Vineet
(Expert) 21 February 2014
please dont deposit your money in your wife's name. The income earned shall be clubbed in your hand. Further if TDS is deducted in her name, it will be very difficult for you to avail credit of the same.
