The Economic Times

If I gift my Rs 2 lakh to my wife who plans to invest in FD, who will pay income tax on interest earned?

ET Wealth Reader's Query: I am the only earning member of my family. My company has given me a bonus of Rs 2 lakh this year (after deducting TDS), which has been credited to my salary account. If I gift this amount to my wife and she puts it in a fixed deposit, will the interest earned be taxed in my hands or hers?