I have two MIS account in Post office for Rs. 330000/- each earning Rs. 2200/- as monthly interest on both of them.
1. In first MIS account First name is mine second name of my wife.
2. In second MIS account First name is my wife’s and second name mine.
My Query is am I to include interest earned on both accounts in my income for tax calculation purpose or can I avoid including the interest income of the account in which my wife’s name is first ? My wife is ‘HOUSE WIFE".
Usually, the earnings on MIS account should be split in the proportion of the individual’s holding in the account. Alternatively, you can show your primary account interest earned in your name and your spouse’s primary account interest in her name. This way, she can make use of the maximum income tax exemption limit of INR 2 lakhs p.a. as well.