Master in Accounts & high court Advocate
9610 Points
Posted on 27 November 2024
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.