I am a non-resident Indian (NRI). I have an NRI account in India, in which I keep my savings. From this account, I transfer a fixed amount every month to a joint account with my wife. My wife has no income of her own. Will tax be levied on this savings account? Should I file tax returns?—M.A. Haq
There is no tax implication for you or for your wife for transferring money from one account to another, as long as your wife does not invest on your behalf. NRIs must convert all their resident bank accounts to non-resident (ordinary) or NRO or non-resident external or NRE account. Also, any interest income earned from a bank account (except interest from NRE account which is tax-free) shall be included in the income tax return of the first holder of the account. An NRI must file tax return in India, if income from India exceeds Rs2.5 lakh in a financial year.
