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After retirement, people often open Fixed Deposits (FDs) in their wives' names to save tax or secure their investments. However, a complication arises when the bank deducts TDS (Tax Deducted at Source) on the interest earned from that FD. This leads to confusion regarding who should claim the deducted tax—the husband or the wife.
According to income tax rules, if you invest money in your wife's name, the interest earned on it is added to your (the husband's) income under 'clubbing provisions'.

Can the wife submit a form to avoid TDS deduction?
Speaking to Moneycontrol, tax and investment expert Balwant Jain explained that under certain conditions, income tax laws allow for the submission of a declaration to avoid TDS deduction. This facility is available to senior citizens if their total income does not attract any tax liability. However, in this specific scenario, the wife is not considered the actual taxpayer for the FD. Even though the FD is in her name, the interest income is clubbed with her husband's income. Therefore, the wife cannot submit the form required to prevent TDS deduction.

So, how can the deducted TDS amount be recovered?
There is no need to worry; your money will not be lost. The husband can claim the deducted TDS while filing his Income Tax Return (ITR). The ITR process provides a specific option for this. When filing your ITR, declare the interest amount as part of your total income and enter your wife's PAN correctly. Doing so ensures that the TDS deducted by the bank is credited directly to your tax account.

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