FD income will be clubbed with yours

If the individual invests in the name of his spouse or children, it doesn’t mean that he can avoid tax. He won’t have to pay tax on the money given to the concerned person but the extra income will be added onto the icome of the main investor and will be taxed accordingly. For example if the husband is the investor on the name of his wife, the interest will be treated as his income and will be taxed to him.

It is slightly different when it comes to the investments in the name of minor children as the earning is treated as the income of the parent who earns more and there is an exemption of 1,500 a year per child for a maximum of two children.