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Tax Treatment of interest in joint account

Dr. Jones (Director) (253 Points)

24 December 2009

Husband and wife have a joint account in which they earn interest income.

Under whose Income tax returns should this interest be declared?

Thanks!

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5 Replies

Aditya Maheshwari (CA in Practice) (35867 Points)
Replied 24 December 2009

In the hands of the first holder normally

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Vaishali Bopardikar (CA final passed) (109 Points)
Replied 24 December 2009

It depends upon in whose books u r showing that account...

You can even declare 50% interest income in wife's I. tax return.

Vikram Gagneja (a/c) (108 Points)
Replied 25 December 2009

this is depends upon deposits made by them.

Sunali (Learner) (1317 Points)
Replied 25 December 2009

Originally posted by : Vaishali Bopardikar
	It depends upon in whose books u r showing that account... You can even declare 50% interest income in wife's I. tax return.

Agree with Vaishali..however, generally the account is shown in the books of primary holder or the one who is transacting through the account as generally the joint account is opened only for convenience sake..