Tax on interest earned in a joint account regarding

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A joint savings account holder is concerned about their entire savings account interest being taxed under their name, even though they are only a joint holder. The bank attributes all interest to the primary account holder, leading to a higher tax burden. The discussion highlights that since the wife made no capital contribution, demanding an equal split of interest might not be feasible according to bank policy.

A R M Reddy IFS

A R M Reddy IFS (Querist)

13 September 2025 We have a joint savings account in SBI, with all the retirement benefits received in 2021 deposited in to this account. And every month my pension is added to this account. My wife is a House Maker and she doesnt add any income to this account. But, i am the primary account holder. So at the end of the year the system adds all interest earned to my Form 16 in IT Department site and taxed accordingly. Where as only50% of the interest should be added to my income rather than full interest as i am only a joint account holder in the account. Thus every year i am ending up paying more than 1.5 lakh tax extra as this interest is shown in my account. Please suggest any way how the interest is depicted into my account only half interest earned as i am a joint account holder.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

13 September 2025 As your wife's contribution is nil in capital contribution, how can you demand that the interest be divided equally?
As per Bank policy all the benefits or liabilities of a joint account are attributed to primary account holder, so bank is right in the case.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

15 September 2025 Good Luck...

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