Income Tax on Interest on Joint Fixed Deposit

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  1. Minakshi Khan

    Minakshi Khan New Member


    I am married and staying with my Husband. I have lost my father in Jan,14. My father has invested in fixed deposit of substantial amount by Joint Name either survivor with my Mother. The first name in the fixed deposit was in my father's name and my Mother was a joint holder.

    After Death of my father, In April,14 my mother has dissolved the FDs and reinvested them in her name and My Name. The New FDs are in either Survivor mode. My Mother has the first Name and I am the joint holder. We both have the PAN card number.

    Kindly advice me that at the time of filing Income tax return for the financial year 2014-15:

    1. Can my mother file the income tax return on the FD interest income in her name only as she is the Senior citizen and the FDs have been invested as per Senior Citizen Bank Interest Rate.

    2. Or is mandatory to divide the Interest income in both name and file income tax return on FD interest separately.
  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    As your mother is the 1st holder of the FD, she can disclose the total interest income in the income tax return her own individual name
  3. Minakshi Khan

    Minakshi Khan New Member

    thank you a lot for the advice. It will be a great help if you can advice if their is any option that the Interest of FD can also divided in both of our name and we can separately submit income tax return.
  4. gaurav_kumar

    gaurav_kumar Well-Known Member

    Dear @Minakshi Khan

    You can split this interest income and show half the income in your hands and half in your mothers hands.

    However, there would be practical difficulties in this because the banker would be deducting TDS assuming it is your mothers income.

    Moreover, the banker while submitting the TDS details online will mention that this income has been earned by your mother and in the records of the income tax deptt - this would be reflected as your mother's income.

    Therefore, I would advise you to show the income in your mother's name only because of TDS issues.
  5. gaurav_kumar

    gaurav_kumar Well-Known Member

    You can also try having a word with the banker with respect to TDS deduction and check with your banker about how would be deducting the TDS.
  6. Minakshi Khan

    Minakshi Khan New Member

    Sir, I talked to my banker and they told that the TDS deduction will be in my Mother's name.
  7. gaurav_kumar

    gaurav_kumar Well-Known Member

    In that case - Form 16A and Form 26AS will reflect the complete interest in your mother's name.

    And if you show half interest in your name and half in your mother's name in the income tax return - it may create hassles as the interest income disclosed in the income tax return and in Form 16A & Form 26AS would be different.

    Therefore, it would be better if you disclose this income in the name of your mother only.
  8. I am agree with kumar ji,,,,
    gaurav_kumar likes this.
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