Sir.while in service I invested partly in my ppf and my wife ppf. Both combined is within 80 C limit.declared in Iitr. i am now retired .my wife ppf now matured. reinvested wife ppf proceeds jn SCSS In wife name. This interest from SCSS is taxable in whose hands
Ans: In the scenario you described, where your wife's PPF has matured, and the proceeds have been reinvested in the Senior Citizen Savings Scheme (SCSS) in her name, the interest earned from the SCSS would be taxable in her hands.
Since the SCSS is held in your wife's name, any interest earned on the investment would be considered her income for tax purposes. As per the Income Tax Act, the interest earned from SCSS is fully taxable, and it is added to your wife's total income for the financial year in which it is received.
Therefore, when filing taxes, your wife would need to include the interest earned from the SCSS in her income tax return and pay tax on it as per the applicable tax slab rates.
It's essential to keep accurate records of the interest earned from the SCSS and ensure that it is reported correctly in your wife's income tax return to comply with tax regulations. If you have any further questions or need clarification, it's advisable to consult with a tax advisor or financial expert.