We have a joint savings account of 3 members in a family. Our incomes are also currently jointly deposited into the same account.
How can we calculate the Income on Interests for each? My mother is a senior citizen, so she has exemption upto Rs. 50,000/- yearly. Is it allowed to give her the maximum interest earned into her ITR to claim maximum deduction U/s 80TTB? Each member\’s income deposited also varies, so it\’s quite confusing to split based on each member\’s contribution. Kindly clarify.
If you hold a joint bank account and you aren’t married, you don’t have to worry about community property laws.
Just pay taxes on the interest based on your portion of ownership of the account.
Just like with those married filing separately, you’ll need to alert the IRS that the interest income will be reported on two tax returns. Here’s how to do that.