Income Tax Rules for Joint Fixed Deposit: Nowadays joint fixed deposits are becoming a common thing. Let us tell you that people also consider it a safe investment and want to save money in the name of the family.
On the other hand, if you have made a fixed deposit with your wife, then it is very important for you to know that due to this joint fixed deposit, the income tax department can keep an eye on you.
Let us tell you that if you have also made a fixed deposit with your wife, then this news is for you. Let us tell you that in the present times, joint fixed deposits are becoming a common thing. People also consider it a safe investment and want to save money in the name of the family, but do you know that due to this joint fixed deposit, the income tax department can keep an eye on you. Yes, if some important things are not taken care of, then tax notices can come to your home.
Income Tax Rules for Joint Fixed Deposit : Interest received on fixed deposits is taxable
Let us tell you that the interest received from fixed deposit is a part of your income and it is very important to pay tax on it. Even if the fixed deposit is joint, the tax burden does not increase. The income tax department has gone to see who has invested money in fixed deposit. Tax will have to be paid in the name of this person.
Even if the fixed deposit is joint with any other relative, hence in case of joint fixed deposit, the entire responsibility of tax lies with the main investor.
Income Tax Rules for Joint Fixed Deposit: Why can you get income tax notice, know in the article below
Let us tell you that if the money in the fixed deposit is of the husband but the fixed deposit is in the name of the wife, then the tax department can consider this as a benami transaction. This means that you are showing your property in someone else’s name which is against the law. In such cases, a notice can be issued and a fine can also be imposed.
Because the tax department will consider the husband’s income as the source of income. Let’s know more about the details in the article below.
Let us tell you that many people fill Form 15G or 15H to avoid tax so that banks do not deduct TDS but these forms should be filled only when your total income is less than the tax limit. On the other hand, if you have filled this form by giving wrong information, then the Income Tax Department can consider it as tax evasion. Let us know more about the details in the article below.
How to avoid tax notices
- Tell me who has contributed to the fixed deposit. Keep it clear.
- Show the same interest income correctly in ITR.
- At the same time, if the money in the fixed deposit belongs to the husband, then make him the trust holder.
- Fill Form 15G / 15H only if you are really eligible.
- Pay the fixed deposit amount and keep the bank statement safely.
Let us tell you that joint fixed deposit is a great investment but it is very important to understand the tax rules. If you are careless, you may get tax notice and penalty. That is why it is very important to take advice from a professional before investing.
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