Clubbing provision

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Querist : Anonymous

Querist : Anonymous (Querist)

02 December 2015 Sir,

Please clarify the following issue.

Assessee having a joint account with spouse assessee having first holder. Spouse of assessee transferred deposit in bank through this account. The interest income in whose hands taxable? Whether any clubbing provision is applicable?

Amol S Joglekar

Amol S Joglekar (Expert)

02 December 2015 The owner of funds is taxable irrespective of the fact whose name appears first.

If nothing is claimed as to ownership of the funds, it is presumed that the first named person is the owner.

Querist : Anonymous

Querist : Anonymous (Querist)

02 December 2015 Sir,

Thank you for your reply. How can we justify the second holder is the owner? Please clarify.

Amol S Joglekar

Amol S Joglekar (Expert)

02 December 2015 It is not the question of JUSTIFICATION.
It is the question of OWNERSHIP.

The source plays an important role in justifying the ownership. e.g.

salary earned by second holder and credited to joint account.
rent received by second holder and credited to joint account
gift received by second holder and credited to joint account
remittance received by second holder and credited to joint account
and so on so forth.

Querist : Anonymous

Querist : Anonymous (Querist)

02 December 2015 Sir,
Thank you for your reply. In case cash deposited in this account other than cheque or dd. Can we account source?

Amol S Joglekar

Amol S Joglekar (Expert)

02 December 2015 So long as we are sure of the source, no matter if it is cash or cheque or rtgs or any other mode. The source plays an important role.

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