who is the owner in case of joint accounts in bank

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 May 2011 Family consists of

Mr. A
Mrs. A (Wife of A)

Mr. B (Son of Mr and Mrs A)
Ms. C (Daughter of Mr and Mrs A)

Mr. D (Brother of Mr. A)
Mr. E (Brother of Mrs A)

all have bank accounts. they have opened joint bank accounts- Either or Survivor Mode with Mr. A.

That is all have their own bank accounts. but if they are not available Mr A has authority to sign and withdraw.

Does Mr. A have to show all these accounts in his balance sheet?

Because it is not his account. he only has signing authority in absence of the main account holders?

Assuming none of the others are filing returns, their income is below limit and some of them are nri's???

Is safe to say that in Either or Survivor mode the first person is the main account holder of the account and it is to be shown in his balance sheet and not the second persons balance sheet??

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

26 May 2011 Query 1-Does Mr. A have to show all these accounts in his balance sheet?

Reply- In A's balance sheet only those accounts are required to be shown through which A has transacted on his account.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

26 May 2011 Query -2 : Assuming none of the others are filing returns, their income is below limit and some of them are nri's???

Reply- NRI should get convert his ordinary account in NRO A/c within 6 months of becoming NRI. As such A should not operate
NRI memebers savings A/c unless in NRO A/c he is a joint signatory.

In case of all the members the transaction entered into on behalf of the respective
account holder if could be substantiated then there is no problem in operating such accounts.

Querist : Anonymous

Querist : Anonymous (Querist)

26 May 2011 what if the relatives are out of town, country etc he just signs the cheque on their behalf.

That is not on his account. neither are the transaction routed to his own personal account.

It is just for work done on behalf.

Thus he would not be required to show these accounts in his balance sheet.

Is this assumption correct?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

26 May 2011 Yes, your assumption is correct.

A is not required to show the transactions of other family members in his own personal return.

In case A enters into some transactions on behalf of other person , and other person owns (accepts) the transaction, then it will not be the transaction of A.

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