Who will be charged for interest on FD invested from gift?

Forums Tax Planning Who will be charged for interest on FD invested from gift?

Who will be charged for interest on FD invested from gift?

I propose to gift a sum of Rs 20,00,000/- (Rupees twenty lakh) to my wife in the Financial Year 2107-2018. She will invest this money in a FD in her exclusive bank account where I am not a joint account holder. My wife is filing her own Income Tax Return even though she is not working and earning.Her source of income is gifts only.Please clarify the following:- 1. Will her earnings on the gift amount be charged to me for income tax . 2. If I will be charged for the income she earns on the gift,will it be charged to me for income tax for Financial Year 2017-2018 only or for all times to come.

Profile photo of Sagar Dalavi Asked By: Sagar Dalavi 1 replies 0 helpful answers Last Updated: 1 week, 1 day ago
  • Profile photo of Sagar DalaviSagar Dalavi
    Participant

    I propose to gift a sum of Rs 20,00,000/- (Rupees twenty lakh) to my wife in the Financial Year 2107-2018. She will invest this money in a FD in her exclusive bank account where I am not a joint account holder. My wife is filing her own Income Tax Return even though she is not working and earning.Her source of income is gifts only.Please clarify the following:- 1. Will her earnings on the gift amount be charged to me for income tax . 2. If I will be charged for the income she earns on the gift,will it be charged to me for income tax for Financial Year 2017-2018 only or for all times to come.

  • Profile photo of Shreya OturkarShreya Oturkar
    Moderator

    Amount given by you as a gift to your spouse, will be exempt from tax in her hand. But, the income earned on that amount will be clubbed every year in your income and charged to tax as per the tax rate applicable to you.

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