Tax on “interest on savings bank a/c” credited to the joint bank account

Save Share

This query is : Resolved

Quick Summary

This discussion clarifies who is responsible for paying income tax on interest earned in a joint savings account. Generally, the tax on savings account interest is assessed to the primary account holder, unless explicitly declared otherwise in the Income Tax Return (ITR). This is separate from capital gains tax on shares, which may be clubbed with the spouse who made the initial investment.

Shweta

Shweta (Querist)
Follow

28 March 2023 A and S are husband and wife.
A invested shares of in the name of S.
S sold the shares in FY 2021 - 22.

S received the sale consideration from sale of shares in her Individual Bank Account.

Later the sale consideration was transferred to joint account of A and S.
S is the primary account holder for the joint bank account.
Query 1 – Who is responsible for payment of income tax on “interest on savings bank a/c” credited to the joint bank account? (i.e. Whether interest on savings account will be added in the hands of A or S ).

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

28 March 2023 First of all the capital gains on sell of shares will be clubbed in the file of Mr. A.
Secondly. interest of saving account gets assessed in primary holder's account, unless you declare in ITR other way.

Message likes : 1 times

Shweta

Shweta (Querist)
Follow

28 March 2023 Thanks so much for your help, Sir

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

28 March 2023 You are welcome.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!