I have one query related to FD. If I transfer 3 lakhs to my wife account and she is housewife. so like if I book a FD then as per income tax , she will not be entitled to pay any tax and to prevent tax on FD she need to submit form 15 right?
But my query is wouldnt bank would ask from where that money come? and would they approve form 15?
Mittal-You can gift that much amount to your wife. In that case it is tax-free income for her. You just need to create a letter for future usage (if bank or IT guys ask regarding the source of money). But any interest earned from such FD be income for YOU but not for her. It will be clubbed with your income and taxed.