26 January 2011
DEAR SIR, A FATHER & HIS TWO SONS. ALL ARE "INDIVIDUALS". ALL COME UNDER HIGHEST INCOME TAX SLABS-30%.ALL ARE COMING UNDER TAX AUDIT-HAVING INCOME OF MORE THAN 2 CRORES. NOW, IF FATHER INVESTS 1 CRORE IN FDR FROM HIS BANK A/C. AND HE TAKES FDR IN JOINT NAME OF HIMSELF & TWO SONS. (TWO SONS DON'T GIVE MONEY TO FATHER FOR THIS INVESTMENT.).PLEASE TELL ME - WHAT CAN BE PROBLEMS FROM ACCOUNTING POINT OF VIEW AND INCOME TAX POINT OF VIEW. THANKS ANCKOORA
26 January 2011
There should not be any problem from accounting point of view. The investment will be prima facie in the name of father only. secondly. under income tax also, father will be taxable for the interest income if his name is the first name on the FD certificate.
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