Is annual interest earned on bank deposit held in the name of husband and wife can be divided by two and two income tax returns be filed by them or not? husband is a pensioner and wife is not employee .only house wife. can you please answer my question early.
ramamohanarao, hyderabad.
1 Answers
Hi,
There is no clear provision for the treatment of interest from joint accounts. If TDS has to be deducted by the bank, the bank will generally credit it against the PAN of the first holder. You can check this in your Form 26AS.
So, if you want bank to deduct TDS or you would like to file taxes as per both of your contributions to deposit, then you can mandate your banker accordingly. You may have to cheque with your banker if they are treating this account as single payee account or joint payee account.
If bank is deducting TDS (if any) in both the account holder names then both of you can file income tax returns. In case if your spouse's interest income is less than the basic exemption limit then TDS (if any) can be claimed as Refund when she file her ITR.
Read:
http://www.relakhs.com/recurring-deposit-taxes-bank-fd-rd-interest-itr/
http://www.relakhs.com/form-16-form-16a-form-26as-tds-itr/
http://www.relakhs.com/tax-deducted-at-source-tds-rates-fy-2016-17/
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