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Tax Effect of Receipt in joint bank account

Raj Thakkar (ARTICLE) (374 Points)

07 April 2019

For the purpose of construction of a temple for the worship of certain number of families, contribution received from all of them and deposited in a joint account opened in the name of two of them.. What will be the tax implications in the hand of joint holders for that receipt?

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6 Replies

CA Shikha Sharma (Ceo) (3869 Points)
Replied 07 April 2019

temple remotes service

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Raj Thakkar (ARTICLE) (374 Points)
Replied 07 April 2019

Thank you sir for the reply but will you please Elaborate in detail that whether receipt from contribution will have any impact in the income of the joint holder of the account?

Narendra Kumar (other) (299 Points)
Replied 08 April 2019

Yes, it will impact the tax liability of the account holders, as the same (the account) will be required to be declared in ITR. Better to form AOP.

2 Like

CA Shikha Sharma (Ceo) (3869 Points)
Replied 08 April 2019

no such taxability

1 Like

Darshan Kartik (Manager) (302 Points)
Replied 08 April 2019

The amount is may not be treated tax free and likely to be added in the account holder's income.

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Raj Thakkar (ARTICLE) (374 Points)
Replied 08 April 2019

Thank you all for the reply, if it is taxable and if we go for AOP, in future will it require any annual compulsory compliance (like audit or filing ITR etc. )? because contribution for construction of temple will be received & used for it and in future no major transactions are supposed to happen and there is no activity which results into income.. If any other solution is possible then please guide...