Treatment of interest of fd in joint a/c

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 April 2016 in joint bank a/c A -1st holder & B - 2nd holder . FD put in bank a/c with the name of B . than interest treat as income of B or A ? or A ?

Amol S Joglekar

Amol S Joglekar (Expert)
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07 April 2016 It is for A and B to decide and disclose that out of whose money the FD is created.
The owner of the funds shall show the same as income.

Querist : Anonymous

Querist : Anonymous (Querist)

07 April 2016 it a Husband & Wife. Husband is pensioner person and get big amount after retirement so he put FD in their bank A/c. Which A/c is joint with their wife. He put some amount FD in the name of their wife and some on his name. So my question is in both cash interest income will treat in whose IT return ?

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Amol S Joglekar

Amol S Joglekar (Expert)
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07 April 2016 Does the wife possess any SOURCE of income? (For husband you have clarified that PENSION is the source of income)

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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07 April 2016 If TDS deduction matter is involved,on which PAN (A or B) tds has deducted then tds will decide whom will show interest income.

Amol S Joglekar

Amol S Joglekar (Expert)
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07 April 2016 No. TDS is not the decisive factor as to who is the OWNER of the FD.

Querist : Anonymous

Querist : Anonymous (Querist)

07 April 2016 wife has only Interest income from SB A/c & FD in their separate A/c.

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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07 April 2016 If tds deducted on wife PAN then how can husband claim tds on his different PAN ?? is it possible ??

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Amol S Joglekar

Amol S Joglekar (Expert)
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07 April 2016 The money, out of which the FD is created in the name of wife, is owned by (belongs to) husband or wife? If it is owned by wife, then the interest is shown in her return and vice versa.

Amol S Joglekar

Amol S Joglekar (Expert)
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07 April 2016 @Murtaza Bhagat : Interest will be shown in Husband's ITR. The refund is claimed by wife through her ITR.

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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07 April 2016 Husband has decided if my pension income and interest income (from FDS) will go above taxable limit then he has to pay income tax thats why he has put some FDs in her wife name to avoid taxability. This is a fair decision but Joint bank a/c will create difficulties because after maturity amount of both person will be in same a/c. so bifurcate FDs they need to have separate bank a/c.

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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07 April 2016 Yes sir I am also telling that...!!!

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Amol S Joglekar

Amol S Joglekar (Expert)
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08 April 2016 @Murtaza Bhagat : Are you NOT taking into account "CLUBBING of INCOME"? You are, I hope.