New Delhi, June 17 -- Several retired individuals often invest their savings in fixed deposits opened in their spouse's name, but this can later create uncertainty regarding Tax Deducted at Source (TDS) deductions and the correct reporting of income in tax returns.

Under the income tax framework, an individual may submit a declaration seeking non-deduction of tax at source on specified income, provided certain conditions are fulfilled. For taxpayers who are not classified as senior citizens, such a declaration can be furnished only when the tax liability on their total income is nil and the income covered by the declaration does not exceed the applicable basic exemption limit.

The rules are relatively different for senior citizens. They...