TaxTMI 
TaxTMI 
Accountability of inetrest earned on FD
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....ccountability of inetrest earned on FD<br> Query (Issue) Started By: - KASTURI SETHI Dated:- 3-3-2016 Last Reply Date:- 19-3-2016 Income Tax<br>Got 5 Replies<br>Income Tax<br>Dear all experts, If I gift one FD of more than Rs.one lakh to my wife, whether interest earned on that FD will be accounted for towards my income or my wife's income for payment of Income Tax ? Pl. guide. Thanks. Repl....
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....y By Ganeshan Kalyani: The Reply: Sir, in my view the interest income is taxable in the hands of your respected wife. However I welcome experts view on this. Thanks. Reply By KASTURI SETHI: The Reply: Sh.Ganeshan Kalyani Ji, First of all thanks, Sir. As per my C.A. (My business partner) husband is responsible for payment of Income Tax on the amount of interest income of gifted FD. I wanted to h....
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....ave another view for confirmation before deposit of Income Tax. Anyhow it is taxable. (in my hands and not in wife's hands). Reply By Ganeshan Kalyani: The Reply: Sir I have re-checked the provision. I referred another section based on which I had replied. But as per section 64 of the IT Act your partner has rightly replied. Thanks. You may refer section 60 61, 62, 63, to 64 of Income Tax Ac....
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....t which deals with Clubbing of Income. Thanks. Reply By KASTURI SETHI: The Reply: Sh.Ganeshan Kalyani Ji, Agreed. It means my wife cannot avail exemption of three lakhs as senior citizen on account of interest earned on gifted FD because interest income is to be accounted for in my account for the purpose of payment of Income Tax. Do you agree ? Reply By Ganeshan Kalyani: The Reply: Yes sir.....
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.... Any other income will be eligible for the basic exemption.<br> Discussion Forum - Knowledge Sharing ....