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Joint Savings Account Interest: Who Reports It? My Wife and I Need Answers!

Vivek

Vivek Lala  |288 Answers  |Ask -

Tax, MF Expert - Answered on Sep 30, 2024

Vivek Lala has been working as a tax planner since 2018. His expertise lies in making personalised tax budgets and tax forecasts for individuals. As a tax advisor, he takes pride in simplifying tax complications for his clients using simple, easy-to-understand language.
Lala cleared his chartered accountancy exam in 2018 and completed his articleship with Chaturvedi and Shah. ... more
Asked by Anonymous - Jun 26, 2024Hindi
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I have joint savings bank account with my wife. Who should be showing the interest income in ITR for saving interest, me or my wife?

Ans: The first holder will have to show the interest
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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I am a retired govt. servant and get pension. Also I get Interest from Deposits, Saving and Acc. Int. I show this income in my Income Tax returns filed in Form ITR-1 SAHAJ. During the current Financial Year I have received the maturity amount of my PPF maintained in the Post Office. Out of the amount received I have a certain amount given as a gift to my spouse. She has invested the said amount received by her from me as a gift in the SCSS A/C and gets interest on that amount. I want to know whether the amount she receives as interest from the amount given by me is to be included in my income and to be shown in the Income Tax Return. If so, at what place i.e. in which column? I have to show the income so included as I do not see such places or column. In which I have to indicate this amount Sr. No. B3 Income from Other Sources along with the Interest received by me from Deposit etc. Since the amount of interest received by my spouse is included in my Income, Whether the said amount is also to be shown in her Income Tax Return or otherwise? As if it is to be shown in her return also then there will be duplication. This clarification is sought as I file my return myself and since the notice I or my wife may not get. I hope you will kindly guide me in this regard and oblige us. Thank you in advance.
Ans: If taxpayer directly or indirectly transfers an asset to spouse for inadequate consideration than Income from such asset is clubbed in the hands of the transferor. Transferor (taxpayer) should show such income in Schedule SPI of Income Tax Return filed by such tax payer in whose hands income is clubbed. No need to show said income in the income tax return of spouse. 

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I am my cousin sister are in serious relationship with each other for 7 years. My and her mother are cousins. We both want to marry with each other but we know our parents never agree for this at any cost. I am a government employee. We want to marry against our family how can we approach it? Plz tell.
Ans: Given your long relationship of seven years, your bond seems strong, which is a good foundation for moving forward. However, it’s also important to be realistic about the potential fallout from family disapproval. You may want to try having a calm, private discussion with your parents, explaining that this relationship has developed over time and is not a rash decision. Focus on expressing your genuine commitment to each other and the values that you share, rather than just defending the relationship itself. They may still oppose, but at least you've shown maturity in your approach.

If family opposition remains intense, and you both are determined to move forward, you might have to proceed independently and elope or register the marriage without their blessing. Understand that this could create a rift for some time, so you’ll need to rely heavily on each other for emotional support. Over time, many families soften when they see their children are happy and stable, but that’s not always guaranteed. It’s important to make sure you're both fully prepared for the consequences, both emotionally and socially.

Also, considering professional counseling might help you both navigate this difficult situation, especially in balancing your relationship and family dynamics. Ultimately, staying strong and united as a couple will be key to overcoming whatever challenges lie ahead.

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