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TMI BlogInterest on deposits in joint names--Deduction of tax at source u/s. 194A of the Income-tax Act, 1961--RegardingX X X X Extracts X X X X X X X X Extracts X X X X ..... ard of Direct Taxes. To All Chambers of Commerce. Sir, Subject : Interest on deposits in joint names--Deduction of tax at source u/s. 194A of the Income-tax Act, 1961--Regarding. Sub-section (1) of section 194A requires any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any income by way of interest other than "Inter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interest be aggregated in the joint names of X and Y with the interest income on deposits in individual names of X and/or Y. This question becomes particularly relevant for the purpose of determining the limit of Rs. 1,000 up to which the interest income in a financial year does not require any deduction of tax at source. (ii) If the interest on a joint account has to be aggregated with the int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to any one of the payees in their separate or independent accounts. The persons responsible for deducting the tax are advised that, in the absence of any information to the contrary, they may aggregate the interest on a joint account with the interest on deposit in the individual's account who has higher interest income. Thus, if there is a deposit of Rs. 5,000 in a joint account of M/s. XY and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Credit for the payment of tax deducted at source under section 199 of the Income-tax Act will be given to the person in whose name the certificate under section 203 has been issued. 6. If any objection is taken to the deduction of tax at source in the above manner or it is contended that the joint account holders constitute a separate person and no deduction of tax at source should be made, it w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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