US Savings Bonds

Archive for August, 2008

Question: Investing under Spouses name.?

I am in the IT field. I am in 33% tax bracket in India. I have some savings in USD when I was posted in US on deputation. I want to get the money to India, invest in FDs or Govt bonds and earn interest. Considering my tax bracket, I want to transfer the savings in US to my spouses account in India who does not earn anything. And invest in her name. Can I do that? Please suggest if you have any thoughts.

Answer: Scheme of Income Taxation in India
Clubbing of Income
The total income of an individual also includes certain income of other persons. These are:-
a.income of spouse from,
i.remuneration derived from the concern in which the individual is substantially interested unless the remuneration is by virtue of the application of technical or professional skill possessed by him or her;
ii.assets transferred by the individual to the spouse or to any other person for the benefit of the spouse unless the transfer is for adequate consideration or in consideration of an agreement to live apart.

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