Tax on interest income
This query is : Resolved
02 October 2016
Dear Sir/Madam,
My parents have some Term deposits from their savings from salary. Both of them are pensioners. In 26 AS the entire interest is showing to my dad who is the first account holder in those term deposits. But as I said the deposits are because of the efforts of both of them. Can my dad show only 50% of the interest in his tax and the balance 50% in my mum's tax. Do we have any case laws to substantiate if my dad show only 50% interest in his tax return.I checked with the bank and they confirmed that the term deposits are in Joint names but because Dad being the first account holder the entire interest will be reported under his name. Doesn't sound ok to me.Please guide with your valuable opinion.
Thanks and regards
My parents have some Term deposits from their savings from salary. Both of them are pensioners. In 26 AS the entire interest is showing to my dad who is the first account holder in those term deposits. But as I said the deposits are because of the efforts of both of them. Can my dad show only 50% of the interest in his tax and the balance 50% in my mum's tax. Do we have any case laws to substantiate if my dad show only 50% interest in his tax return.I checked with the bank and they confirmed that the term deposits are in Joint names but because Dad being the first account holder the entire interest will be reported under his name. Doesn't sound ok to me.Please guide with your valuable opinion.
Thanks and regards
CA Aman kesharwani
(Expert)
05 October 2016
Dear Ryan,
since your mother and father being a joint holder income belong to both of them hence in ITR your mother and father can report 50-50 % of total interest Income.
since your mother and father being a joint holder income belong to both of them hence in ITR your mother and father can report 50-50 % of total interest Income.
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