09 May 2019
I have a joint account with my father. My father name appears first in the bank account(he is the first holder) but he does not make any transaction in this account as he owns another saving account which is exclusively in his name.My salary gets deposited in the joint account and all the transactions in the joint account have been done by me and the balance amount consists of salary earned by me during F.Y. 2018-19.My question is: 1.) In whose Income Tax Return would interest earned on joint account be taken as an income? 2.) Closing balance amount as on 31.03.2019 in the joint account would be taken in whose balance sheet for the F.Y. 2018-19?
09 May 2019
For both questions answer is the same in the name of first holder. You should get your salary deposited in your personal bank account and not in the joint account.
09 May 2019
Ok Sir but my father does not have any transaction related to his personal business. All debit and credit during the year is related to my own activities.As we all know that accounting has dual impact. So if I take salary income in my profit and loss account it will subsequently be added to my capital in the balance sheet. Without taking balance available in the joint account how would I counter the my salary income in the balance sheet with my assets? For ex: suppose i earn Rs 240000 p.a.. This amount would be added to capital in the balance sheet leading to increase in the total of liability. If I wont take balance in the joint account, my asset side of the balance sheet would fall short by Rs 240000. How to deal with this now?
CAclubindia
