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Who should bear the tax of the income from joint account

Damodar (VP) (32 Points)

18 May 2017

Me and my father has invested in Fixed deposit as joint account. (My father is the first applicant and I am the 2nd applicant). But the funds are from my income only.

In this case, how should the income from the FD be accounted? Should it be under my accounts or my father's accounts?

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6 Replies

(Guest)

income tax will come to u since money trf.from your account clubbing provisons attarcts

but your father is the first holder in fd so tds is deducted in your father name

Damodar (VP) (32 Points)
Replied 18 May 2017

Thank you for the quick reply.

Since my Father is the first applicant. bank deducts TDS under his PAN. Accordingly the TDS reflects in my Father's Form26AS.

How can I transfer this TDS to my PAN and it should reflect in my Form 26AS.

Priyanka Aggarwal (CA Job) (33 Points)
Replied 18 May 2017

you may contact to your bank to deduct TDs in your name instead of your father..

and there is no option to transfer TDs from your Father Form 26AS to your Form 26AS.

Damodar (VP) (32 Points)
Replied 19 May 2017

Thank you Ms.Priyanka and Mr.Sameer for your suggestions.

Damodar (VP) (32 Points)
Replied 19 May 2017

Thank you for the suggestions.

I checked with the bank. SInce my father is the 1st applicant in the FD, the TDS will be deducted from my father's account only. However the soruce of the funds are from me.

Hence is ts possible that while filing the income returns, this income is shown in my accounts only rather than my father's accounts?

Mukesh J Ladia (Officer) (140 Points)
Replied 20 May 2017

No, Bank will not deduct TDS from joint holder, as system will automatically deduct TDS from interest on FD and first holder claim that TDS for tax or refund