Taxability of Interest Income on joinet name saving Bank
This query is : Resolved
31 July 2010
Hi,
I have joint saving bank account with wife. First name is mine and second is wife name. We received the interest on saving bank account Rs. 50,000/- . We both are working. Now question is:
1. Is there any circular/notification or any court decision provided under income tax act regarding the first account holder will pay tax on Interest on saving bank accout, if account are in joint name.
Kindly Advice
I have joint saving bank account with wife. First name is mine and second is wife name. We received the interest on saving bank account Rs. 50,000/- . We both are working. Now question is:
1. Is there any circular/notification or any court decision provided under income tax act regarding the first account holder will pay tax on Interest on saving bank accout, if account are in joint name.
Kindly Advice
CA Sanat Pyne
(Expert)
31 July 2010
In joint a/c normally first holder will be liable to pay the tax on interest.
Message likes :
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VINOD ARORA
(Expert)
03 August 2010
There is no spelt out law in this regard, as far as Income-tax is conccerned, however there are so many legal cases on succession aspect involved in the matter post death of either joint holder.
Therefore in the given circumstances, it is adviseed that joint holders should start up the account with equal contribution and keep on doing transactions from both ends as far as possible. Also, that both should show income on 50:50 basis, to avoid future complications. This is most logical.
Therefore in the given circumstances, it is adviseed that joint holders should start up the account with equal contribution and keep on doing transactions from both ends as far as possible. Also, that both should show income on 50:50 basis, to avoid future complications. This is most logical.
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