It effect on fd opened in joint a/c

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RESHMA (Querist)
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03 January 2018 If a single FD is opened with joint name. who is liable to show FD as investment in there BS, 1st holder , 2nd holder or both of them?. Whether they shows half of the amount equally? or only 1st holder can show as investment in FD?, If TDS is shown on 2nd holder a/c & maturity amount will be shown on 1st holders A/c what will be accounting effect.

ND (Expert)
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03 January 2018 The investment will ideally be shown in the Balance Sheet of that person who has contributed the funds for making the FD.
However in case all the joint holders want to show the amount equally, then they can refund the amount of FD which is equal to their share to the person who has contributed the funds. In such a case the PAN of all the joint holders should be updated in the bank records so that TDS and interest income on FD is correctly reflected and accounted.

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