04 July 2015
The newly issued ITR FOR AY 2015-16 seeks mentioning of all SB & Current bank account numbers of assessee. Should these include all joint SB accounts too or just accounts with single holder / primary holder? This question aince I vaguely remember reading somewhere that joint accounts NEED NOT BE MENTIONED, while ITR does not indicate what has to be included or excluded.
05 July 2015
Sorry for coming back again. Can I exclude mentioning SB accounts where I am 2nd or 3 rd name since these were done for safety reasons only and not for any financial benefit. In fact some CA opine that we have to mention only those accounts where the assessee is the primary account holder and not secondary or tertiary holder. Since I am confused, I am seeking your advice. Thanks.
02 August 2024
When filling out your Income Tax Return (ITR), the instructions regarding bank account details are specific but can sometimes lead to confusion, especially regarding joint accounts. Here’s how to handle bank account information in your ITR:
### **Bank Account Details in ITR**
1. **Accounts to Include:** - **Single Holder Accounts:** You should include all bank accounts where you are the sole or primary account holder. - **Joint Accounts:** Include all joint accounts where you are either the primary or secondary/tertiary holder. Even though you might not be the primary holder, these accounts are still under your name and may have financial transactions relevant for tax assessment.
2. **Why Include Joint Accounts:** - **Regulation Compliance:** The Income Tax Department requires the disclosure of all bank accounts held by the taxpayer to ensure transparency and compliance with anti-money laundering laws. - **Complete Disclosure:** Even if you are not the primary account holder, joint accounts can have transactions that are relevant for tax purposes. Complete disclosure helps avoid potential issues during assessments or audits.
3. **Clarification from the IT Department:** - **ITR Forms:** The ITR forms usually ask for details of all bank accounts held by the taxpayer. This includes both single and joint accounts. - **Safety Accounts:** Regardless of whether the account is for safety or financial benefit, if it is under your name, it should be included in the return.
### **Summary:**
- **Include all bank accounts** where you are either the primary account holder or a joint account holder (even if secondary or tertiary). - **Exclude** bank accounts only if they are not held in your name at all (i.e., accounts in names of others or closed accounts not held by you).
**Rationale:** Including all accounts ensures full compliance with tax regulations and reduces the risk of discrepancies or queries from the tax authorities. It helps in providing a clear picture of your financial transactions during the financial year.
If you have any specific concerns or unusual circumstances, consulting with a tax professional or Chartered Accountant might provide additional clarity based on your individual situation.
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