ITR Filing: How is interest earned on a joint account taxed, and how to report it correctly in your Income Tax Return?

Income Tax Return Filing 2025: Joint accounts are regular bank accounts that are opened by two people jointly who can enjoy equal benefits when it comes to deposits and withdrawals — including income tax return (ITR) benefits.

Joint bank accounts have a primary account holder, and the second person is called a secondary account holder. They are clearly identified in bank documents.

Joint bank accounts have several benefits. This includes buying an asset together such as a house. This means that the deed of the house will have both names, and thus both the account holders can claim tax deductions while filing ITR.

This also means that the taxable interest earned on joint accounts will have implications on the account holders.

How is tax calculated on joint bank account interest?

The interest earned in joint accounts is taxable for both the holders. This applies equally to both primary and secondary account holders, even if they do not contribute equally to the joint account.

The tax earned on interest is payable for both primary and secondary account holders. Under Section 80TTA, one can claim deduction of interest earned on savings accounts held with the post office up to ₹10,000.

Both account holders are responsible for reporting their share of the interest income on their individual tax returns or ITRs.

It must be noted that both the individuals should report their income from joint account interest in their ITR.

How to file ITR for joint account?

Both the primary and secondary account holder is required to declare the joint account interest in their ITR filing.

The ITR filing for joint account must be done as per the primary and secondary account holders’ profession or source of income. For example, if you are a salaried person, you need to file ITR(1).

Here is how to file ITR(1):

• Choose ITR(1) and select the reason why you are filing ITR.
• You will be guided to a pre-filled ITR. Confirm the details, provide your bank account details and enter the OTP.
• Once you enter your income, bank details and personal details, verify everything. Now vrify the pre-filled information.
• Verify the return summary check and pay the remaining tax or check the refund amount and submit.
• Ensure to e-verify your ITR.

Disclaimer: This article is for informational purposes only and does not constitute legal or tax advice. Taxpayers are advised to consult a qualified tax professional or refer to the official website of the Income Tax Department for accurate and up-to-date guidance before filing their returns.