Bank saving account's interest

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This query is : Resolved

rl334709 (Querist)

16 March 2014 If two sons above age of 25 and their father have a joint bank account. Father's salary kept credited in that account till his retirement. Then the elder son has credited some amount in that account out of his inome. The younger son has not credited any amount ever from his own side.
Now , father is retired. He doesnt get pension in that old account. Now while calculating father's total income, the whole of interest amount is to be taken as father's income? Or is it to be divided into three parts? If yes, then on which basis it should be divided?
The elder son is a nonresident. He has also credited amount in this account.

Nikhil Kaushik

Nikhil Kaushik (Expert)

17 March 2014 the precise way of doing it would be to apportion the interest on the basis of contribution made to the account. However, it may pose a problem as the bank normally would deduct tds against one particular PAN.

Assuming that inclusion of the whole of interest income in any of the one person doesnt result in loss of tax revenue to the department, you may include the same in any of the one person's income preferably father.

rl334709

rl334709 (Querist)

18 March 2014 Thanks for ur valuable advice.

Nikhil Kaushik

Nikhil Kaushik (Expert)

18 March 2014 You are welcome sir.

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