Is income from a joint account taxable?

Tax queries 703 views 9 replies

mayuri

n/a

63 Points Joined May 2012

Hi Guys,

I have a joint account with my parents both mother and father. Two years back my father made FD on my name in that account. In dec 2012 the fd got matured and the bank has given us the cheque. Since the cheque had my name on it and it was given to me as gift so i deposited it my another bank account operated by only me. Now the question is do I need to show it in my ITR form and where?

I am filling ITR-1 as my income is from salary and FD's interest.

Where should i show this income?

In which section it is to be shown?

Do i need to show the full cheque amount or just the interest accrued in last two years(i have not mentioned the interest accrued on this in past any year as i was unaware).

Please help.

Thank you,

Mayuri

p.s My father is primary holder of this bank account.

Replies (9)

Ankit

CA CS

3064 Points Joined June 2009

Hi Mayuri,

since the Cheque issued by the bank contains the principal amount as well as the interest amount, you have to show only the amount if the interest component in the ITR and no the principal since that is not your income.

Since the gift received from a relative is exempt, it is not to be shown in the ITR form

mayuri

n/a

63 Points Joined May 2012

Hi Ankit,

Thank you for your reply. Just confirming once again do i really need not show it in ITR form? Hope you get my point that the cheque had my name and it was issued from a bank where i have a joint account. As we three are owner of that bank account so my father created an FD on my name and on maturity they gave me the cheque as my birthday present.

Regards,

Mayuri

Ankit

CA CS

3064 Points Joined June 2009

You are welcome Mayuri,

yes...I ll reconfirm the same.

in the ITR, only the taxable gifts are to be disclosed. and the gift received from relatives (Parents in your case) is exempt and hence need not be disclosed in the ITR Form.

however, since the FD was in your name, the interest amount has to be disclosed in the ITR.

if you have any more queries..please ask.

- Ankit

Mihir

Wealth Manager

5293 Points Joined December 2008

Interest received on FD will be classified under income from other sources. Check 26AS to see if bank has made any TDS deductions.

But wait for others to reply on the aspect of clubbing of income.

mayuri

n/a

63 Points Joined May 2012

Hi Ankit,

So in which section of ITR-1 fom should i show the interest amount? Should i add it to my other FD interest amount?

Thanks

Mayuri

Ankit

CA CS

3064 Points Joined June 2009

Clubbing on Income applies only if she were to be a minor and not otherwise.

Ankit

CA CS

3064 Points Joined June 2009

the interest amount is to be shown under Income From Other Sources. I think it is the coloumn after income from House Property.

also check if any TDS has been deducted on the interest amount. that you can get from fomr 26AS

mayuri

n/a

63 Points Joined May 2012

Actually if TDS is deducted then it will not show in my 26AS as it is joint account and my father's pan number is given in that account as he is primary holder and me and my mon as secondary.

Ankit

CA CS

3064 Points Joined June 2009

but if the FD is in your name, then how come your father's PAN was given?

if that is so the case, if you are taking the interest income in your hands, then even the TDS you should claim. at the most the TDS credit will not be allowed by the department. in that case, you can write a letter explaining the facts.