Tax savings on FD's made in wife and wife is H/W
RAJESH
(Querist) 27 April 2010
This query is : Resolved
kinldy suggest how tax can be saved if the FD's are made in the name of wife and wife is house wife.
thanks
rajesh
9968149454
aman kumar
(Expert) 27 April 2010
yes the limit of income tax is higher for women ! but you can do partly or FD OF LETTEL amounts do parts and makes fd with different accounts also
mahendrakumar
(Expert) 28 April 2010
the question was not whether women's tax rate is more liberal than men as such the above advise is not proper,i feel,
one can claim relief for tax rebate for deposits made in the name of wife/husband.
only thing is that only one of them can claim tax rebate.
Vineet
(Expert) 29 April 2010
Dear Mr Rajesh
What is the source of the funds for FD.
If it is out of your income, then the entire interest income on such FD's is to be clubbed with your income and any investment for tax saving purpose in your wife's name would not help.
AMIT BAJAJ ADVOCATE
(Expert) 30 April 2010
It seems from querry that you are making a gift to your wife in the shape of F.D. It would attract clubbing provisions u/s 64 of Income Tax Act 1961.
The interest income would be added to your income. If you want to gift some money to your wife then invest that in the name of your wife in such investments the income from which is exempt under I.T. Act For e.g. Investment in mutual funds.
In such case even if clubbing happens the income from such investment would be exempt even in your hands after clubbing.
