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I want to divert some investment (say like FD but not in banks but some private players but gives monthly return) in my wife's name .  She is not earning any money.  Can she generate the capital by pledging her jewels and in turn I pay  from my money to recover back the jewel.
asked in Taxes by (120 points)

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1 Answer

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Your's is not a fool proof method to cheat income tax department. When you pay money to recover back the jewel, the amount has to shown in your ITR as loan given to wife and in her ITR as loan from husband. These figures will continue untill you clear the loan. You can't hide these figures.

And remember if your ITR comes into scrutiny, you'll be easily caught.

So, it's better, you invest the money in your name and make her nominee.

As far as taxation on interest is concerned, that can be wasily adjusted. Check http://www.investmentkit.com/articles/2012/09/how-to-get-tax-free-returns-from-your-fixed-deposit/

Get in touch with your CA for more details.

Hope it will help you.

Admin
answered by (48.8k points)

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