Treatment of Joint Bank Accounts in Filing IT Returns

Joint Savings / Term Deposit accounts is a common thing. 

Banks have various ways in which they settle the accounts. From the IT angle, how the credits in savings account or maturity proceeds are bifurcated. The question arises as the cheques favouring all the joint holders are collected by banks in the same account. In such a case how the ownership of funds is reported  for the IT purposes.  

Does the receipt of maturity proceeds of the Term deposit by surviving member make him the owner of the funds or he is regarded as Trustee till the legal heirs of the deceased holder claim the share of the deceased from him/her?  

Replies (1)

1 The transaction appearing in joint bank account are to be identified and has to be reported in the respective account holder's case.  Interest can also be divided according to the amount remain deposited. 2   The survivors are trustees and has to give the amount to the legal heir. 

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