Good afternoon. Please tell me that postal RD of wife ,when prematurely withdrawn due to medical emergency the amount credited to Bank account of joint one where I am the primary a/c holder and wife is secondary. The RD is completely wife's income. Now who will pay the tax of amount received from bank ? Myself or wife ? But it shows in my income .What shall I do ?

Ans: I understand this situation can be confusing, especially during a medical emergency. Here's how the tax on the withdrawn amount likely works:

Tax Liability: The tax responsibility generally falls on the account holder where the money is credited. In this case, since the RD proceeds are in the joint account with you as primary, the tax liability would be yours.

Wife's Income Proof: However, you can potentially minimize the tax burden by claiming it as your wife's income. To do this, you'll need documentation to prove the RD deposit originated from her income. This could include receipts or bank statements showing her salary deposits used for the RD.

Filing Separate Returns: If the RD amount is substantial and pushes you into a higher tax bracket, consider filing separate tax returns. This might be beneficial if your wife's income falls under a lower tax bracket.

Here's what you can do:

Gather Documents: Collect documents proving the RD deposit came from your wife's income (salary slips, bank statements).

Consult a CA: A Chartered Accountant (CA) can analyze your specific situation and advise on the most tax-efficient way to handle this. They can guide you on filing taxes considering your joint account and your wife's income proof.

Remember, this is a general explanation, and tax laws can get nuanced. Consulting a CA ensures you get the most accurate advice for your situation.