If a couple has joint bank accounts, joint house properties and taken joint loan for purchase of property, both are tax payers then how the rent on property, bifurcation of TDS deducted by banks, interest and principal amount paid can be done so that both can file their income tax return independently? Can each of the above amount can be taken 50% for each?
Bifurcation of house property income, tds, lone payment etc.
Replies (2)
- Both of them can show rental income and deduct interest on borrowed capital in the proportion of their ownership.
- In case of joint account with bank, banks usually deduct tax from the deposit holder who has the highest interest income, in which case TDS credit can be claimed by the person from whom it is deducted. In this case, form 16A will be issued to such person only.
- However, if the joint account holders have specified their share to the bank before TDS, then interest income will be credited to the joint accountholders according to their share and tax at source (if applicable) will be deducted from each of the recipient and separate forms 16A will be issued. In this case, both of them can show their share of interest and claim TDS separately.
Thanks poornima Madam for the info
I did not know that for Bank FDs two form 16A can be issued on request if informed in the begining i.e at the time of opening the FD account
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