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Income tax -joint account-fixed deposit

Others 397 views 1 replies

renuka

Student Others

38 Points Joined April 2015

Hello

I would like to know the tax payable for the interest from FC in bank for the following situation

There are two persons A (senior citizen) and B (not senior citizen and earningi person). How the tax is calculated for person B ?

For example , if the joint account holders receives 1.25 lakh as interest from FD, how the tax is calculated for person B who is employed (not senior citizen) and for person B (senior citizen)?

Thanks

Replies (1)

Guest

Interest will be taxable in the proportion of deposits made of joint holders.

Remember that for joint holdings between non-relatives, there would be no tax applicable on withdrawals of up to Rs 50,000 under Section 56 of the I-T Act. However, anything above this will be taxed in the hands of the recipient

.see link

/experts/treatment-of-bank-interest-earned-by-joint-holders-169276.asp#.VTnJXtKqqko