IT Return on the interest earned in joint saving account

Dear Sir,
I filed income tax ITR 01 for Ay 2020-21. My Income tax got successfully processed in Jan 2021. Yesterday I got a notification from income tax regarding e-Campaign High Value Transactions for Rs 50000. In this notification they have mentioned transactions related to "Interest paid by bank for saving account". I did not declared this amount during ITR filling as this amount was not mentioned in Form 26-AS.
 
When I checked my saving account transactions details then I found that the interest has been mentioned from my joint saving account with my wife. I am the primary account holder and my wife is secondary account holder. Generally I deposit money in this account as she is not earning. 
 
Can the saving interest earned in this account be shared by both my wife (50%) and me (50%) ? If yes, then does she need to fill IT return by showing 50% of the total amount deposited by me as a gift in this account?

Kindly suggest how to share the interest earned in this joint account by me and my wife.

Also how to address this notifications.

Regards
Replies (3)
Quick Summary
This discussion addresses a query about declaring interest earned on a joint savings account where the user is the primary holder and their wife is the secondary. The user received an e-Campaign notification for undeclared interest income, which wasn't reflected in Form 26-AS. The advice given is that the primary account holder is considered the recipient of the interest income and it should be declared in their tax return, as the funds generally belong to them. The thread also touches upon whether this interest can be shared with the secondary account holder and how to handle such notifications.

Show the whole SB Interest in your return as it will be clubbed with your income
First holder is considered to be recipient of interest income.
There are multiple reasons due to which in the said Interest will be taxable in your hands :
1. The money on which interest is earned belongs to you, as you are only the person earning.
2. You are the primary holder

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CA Sachin M Jain
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