Tax applicable on interest on joint fixed deposit.
This query is : Resolved
rohit gupta
(Querist)
22 March 2016
In a joint fixed deposit who is applicable to pay tax?? First Holder or Second Holder or BOTH??
What if the Capital amount is paid by 1st Holder & Interest is credited in the Second Holder Account??
What if the Capital amount is paid by 1st Holder & Interest is credited in the Second Holder Account??
CA Shyam Agarwal
(Expert)
22 March 2016
In General, First holder is always a owner of assets. hence interest earned also will be taxable in hand of 1st holder not 2nd holder only reason that 2nd holder received interest amount.
If interest is already paid to second holder then for accounting, 1st holder show the 2nd holder`s name in his books of account with Loan (liabilities) with the amount of interest.
If interest is already paid to second holder then for accounting, 1st holder show the 2nd holder`s name in his books of account with Loan (liabilities) with the amount of interest.
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