I am retired from private services. 

I lost my wife on 23 Dec'2019. She files IT Returns and for the AY 2020-21 I filed her returns as representative. I too file IT Returns every year. I have not yet filed my returns for the AY 2020-21 since I have a query on the amount of bank and post office fixed deposits, LIC's PMVVY and two MFs of my wife.

As a nominee I received an amount of Rs 73,99,082 for all the fixed deposits of banks and post office, LIC PMVVY of my wife. The two Mutual Funds of Rs 33,31,316 of my wife also transferred on my name.

My queries are:

1. Do I have to show the above in my Tax Return?

2. If I show it, is it taxable?

3. Which ITR form should I use to file the returns for AY 2020-21?

I will be highly grateful for your help and guidance on this sir.

Ans: If taxpayer directly or indirectly transfers an asset to spouse for inadequate consideration than Income from such asset is clubbed in the hands of the transferor. Transferor (taxpayer) should show such income in Schedule SPI of Income Tax Return filed by such tax payer in whose hands income is clubbed. No need to show said income in the income tax return of spouse. 

Ans: For FY 22-23, ITR forms yet to be notified and some major changes are expected. So wait till April 2023. For FY 21-22, person with salary, interest and dividend can use ITR 1 (subject to other conditions like income should be less than 50 lacs, person should be resident etc).

Ans: Respected Sir,

you may file either ITR- 1 or ITR-2 depending on the complexity of the income. Yes, the lock in period of 3 years applies on ELSS schemes and if withdrawn before that it would attract taxability. Please look at the below a detailed note, which would be helpful to you. Withdrawal from Tax Saver Mutual Fund: If you made a withdrawal of Rs. 65,000 from your tax saver mutual fund, it's important to note that withdrawals from equity-linked saving schemes (ELSS) are subject to tax implications.

- ELSS investments have a lock-in period of three years. Withdrawals made before the completion of the lock-in period are considered as short-term capital gains.

ITR Form: Since you are a teacher by profession, your income is likely from salary and other sources. If you do not have any business income, you would typically file your income tax return using ITR-1 (Sahaj) or ITR-2, depending on the complexity of your income sources.

ITR-1 (Sahaj): For individuals having income from salary, one house property, other sources (like interest income), and total income up to Rs. 50 lakh.
ITR-2: For individuals and Hindu Undivided Families (HUFs) not eligible to file ITR-1 and having income from salary, house property, capital gains, and more than one house property, etc.

Ans: Disclosing it appropriately in your return is important.

Seperate return for your wife may not be required.

Ans: There could be many layers to it, and so it's important to consult with a tax professional for tailored solution to your specific situation.

When you file your income tax return (ITR) by clubbing your wife's income, it typically means that both your incomes are reported together in a single return. In such cases, it's important to ensure that all relevant details and incomes are correctly disclosed while filing the ITR.

Regarding the SMS you received, it's possible that there might be some discrepancy or confusion in the information received by the income tax department. Responding to the e-campaign with your ITR Acknowledgment Number and the date of filing should provide them with the necessary information.

However, if your wife has a separate source of income or if there are specific requirements for her to file a separate return, it's advisable to clarify this with a tax professional. The income tax department may require separate filings for individuals with their own sources of income.

If there are any discrepancies or if the income tax department requires additional information, they may initiate proceedings. It's crucial to respond to any communication from the tax department promptly and accurately.

To ensure you have the most accurate and up-to-date information, consider consulting with a tax professional or reaching out to the income tax department directly to seek more clarification on the specific requirements for your situation.