My parents (fathers & mother) are Sr Citizen and both have annual income less then 2 lacs each. Presently both have saparate Bank Accounts and have accummulations approx. 4 Lacs each. I am planning to go for them a joint account and consolidate their funds. Considering this, plz help to understand tax liability may arise and what precutions are to be taken to go with the proposal.
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Tax liability for joint bank account
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Only interest income would be taxable.Budget 2018 has proposed new section 80TTB so as to allow a deduction upto Rs. 50000/- in respect of interest income from deposits held by senior citizen. However, no deduction under section 80TTA shall be allowed in these cases.
Threshold limit for deduction of tax on interest income for senior citizens u/s 194A is proposed to be raised from Rs. 10000/- to Rs. 50000/-
Threshold limit for deduction of tax on interest income for senior citizens u/s 194A is proposed to be raised from Rs. 10000/- to Rs. 50000/-
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