Treatment of Bank Interest in case of joint holders
This query is : Resolved
CA Ankit Verma
(Querist)
23 April 2009
Case-(1)
An assessee earns salary income & deposits it in Saving Bank A/c in which her mother is joint holder, then can we show interest earned during the year as income of mother in her return instead of assessee?
Case-(2)
If we make Fixed Deposits by withdrawing cash from such A/c then can we show interest earned as income of mother?
An assessee earns salary income & deposits it in Saving Bank A/c in which her mother is joint holder, then can we show interest earned during the year as income of mother in her return instead of assessee?
Case-(2)
If we make Fixed Deposits by withdrawing cash from such A/c then can we show interest earned as income of mother?
23 April 2009
In first case it will depend on facts opf the case.
because income tax may ask you why you created a joint account when you are going to add whole income to your mothers account???
In second case if fix deposit is in the name of mother then mother wll get benefit.
because income tax may ask you why you created a joint account when you are going to add whole income to your mothers account???
In second case if fix deposit is in the name of mother then mother wll get benefit.
Manmohan ACA, CS
(Expert)
23 April 2009
Case-(1)
An assessee earns salary income & deposits it in Saving Bank A/c in which her mother is joint holder, then can we show interest earned during the year as income of mother in her return instead of assessee?
No as the money belongs to the assessee not her monther interest shall also be taxable in his hands
Case-(2)
If we make Fixed Deposits by withdrawing cash from such A/c then can we show interest earned as income of mother?
Yes, provided FD is in the name of mother
An assessee earns salary income & deposits it in Saving Bank A/c in which her mother is joint holder, then can we show interest earned during the year as income of mother in her return instead of assessee?
No as the money belongs to the assessee not her monther interest shall also be taxable in his hands
Case-(2)
If we make Fixed Deposits by withdrawing cash from such A/c then can we show interest earned as income of mother?
Yes, provided FD is in the name of mother
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