tax treatment of PPF?

PPF account opened in my wife’s name is maturing on 01-04-2010.It has two components vis money deposited in last 16 years ie 16*60000=960000 and interest earned on the same. my question is on maturity interest part is invested in POST OFFICE MONTHLY INCOME SCHEME, future interests will be clubbed with my income or the same will be treated as my wife’s income and will be taxed accordingly?

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treatment of interest earned from ppf account,what is treatment of ppf mature amount in itr