Tax treatment of joint account money withdrawn

Hello Sir,

My father has opened a joint account in bank with my sister who is married. Now every year in april  my father deposits Rs 40000 in account. And in march month my sister withdarw rs 30000. Now, plzz guide me

1. is that amount rs 30000 will be treated as gift from father to sister in that particular year....or it is an asset of sister "Cash in bank" in her books

2. is the amount withdrawn by sister taxable in her hands in that year.

3. if for 5 years my father deposits rs 40000 every year in joint bank account. and my sister withdraw Rs 100000  from account in the 6th year. is that amount taxable in her hands or it would be regarded as her asset and exempted in her hands.

Waiting for ur reply...

Replies (5)

I think it will be gift in the hands of your sister.

It will not be taxable

However any income earned from the money that your sister has withdrawn will be clubbed in the hands of your father.


Regards


Join us on Facebook https://www.facebook.com/pages/Sampoorna/184315778304697

Plzz tell.    if my sister uses that withdrawn income for her personal  expenses ...

There is no Problem to use it amount for personal exp.

Any withdrawal from the bank is neither taxable in the hands of father nor in the hands of sister. Any interest income shall be taxable in the hands of that person who is the first holder. CLubbing provisions not applicable since i assume ur sister is major.

But withdrawal shall be taxable if deduction u/s 80C is claimed.

Thanks

https://taxbykk.blogspot.com/

Thanks for solving my query....Sir

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 30 September 2026
CA Article Assistant

CA Suraj Garg & Associates

New Delhi

CA Final

View Details
Company
08 October 2026
SALES TELECALLER

HIRE NOVA

Lucknow

Graduate (Any)

View Details
Company
14 October 2026
Asst. Manager/Dy Manager (Costing)

manufacturing

Pune

CMA

View Details
Company
ARTICLESHIP 01 October 2026
Articled Assistant

KPSN & Associates LLP

Chennai

CA Inter

View Details
Company
06 October 2026
Assistant Manager - Audit and Compliance

Ravi K Jain & Co

Noida

Others

View Details
Company
12 October 2026
Chartered Accountant - Internal Audit

HKC | Chartered Accountants & Business Advisors

Ludhiana

CA

View Details
Company
14 October 2026
GST & TDS ASSISTANT

AGGARWAL SANJAY & ASSOCIATES

New Delhi

B.Com

View Details
Company
08 October 2026
Account Executive

Elite Taxation

New Delhi

CA Foundation

View Details