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Joint Account with 3 legal heirs.......

Tax planning 392 views 1 replies

I m one of the three administrators cum legal heir in  the two Joint Accounts with BoI.

One for Savings Account and otherone for Demat Account. I m not the first holder in the accounts.

Is it possible to change my status from 2nd to 1st Holder in these accounts.

Assuming if it's possible what are the taxation liability of 1st Holder once all moneys and shares are distributed to the legal heirs as per family agreement.

Thanks.

Replies (1)

Yes, it is possible to change your status from 2nd to 1st holder in the Joint Accounts with Bank of India (BoI).

You can request the bank to modify the account holder sequence by submitting a written application and necessary documentation.

 However, this change may have tax implications. As the 1st holder, you will be considered the primary account holder, and your tax liability will depend on the account type and transactions: -

Savings Account: Interest earned on the account will be taxable in your hands as the 1st holder. -

Demat Account: Capital gains tax will apply when shares are sold or transferred. .

As the 1st holder, you will be liable for capital gains tax on the shares held in the Demat account. After distribution of money and shares to legal heirs as per the family agreement, your tax liability will depend on the individual transactions and accounts.

You may need to report the income or gains in your individual tax return.

Please consult a tax professional or expert to understand the specific tax implications and ensure compliance with tax regulations.

Additionally, consider the following: -

Obtain a No Objection Certificate (NOC) from the other account holders or legal heirs. -

Update the account documents and KYC information with the bank. -

Review and settle any outstanding taxes or liabilities before distributing the assets.

 


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