Transfer on money

This type of Transaction does not affect any tax impact as it is transfer of money from one account to another account.

No primary account holder need not pay any tax

This is treated as trf to your own account and trf back if this amount is unused

Or if used by other person then show as unsecured loan given and no tax is payable

Hope you understand what I want to say

Dear Sir,

I am assuming primary account holder is your relative. He/She is not required to pay any taxes. You have to options:

1. Treat theoney transferred as a loan and when you transfer it back treat it as repayment of loan.

2. Treat the money transfer as gift and show it in the tax return of the recepient. (This option is available only if both of you are relative)

Please feel free to call/ revert in case of any doubts

Thanks and Regards

Abhishek Dugar

CA CS B.Com

The purpose of transfer from single account to joint account determines the nature of taxation. If the joint account is to be operated jointly by both the primary holder and yourself, as secondary member, you still have control over the funds and it is then merely a transaction of transfer of funds from one's own account to another own account, without loss of control over the funds.

On the other hand, if the joint account is to be operated solely by the primary holder, it is dilution of control over your funds and there is scope to consider that such transfer is either gift or loan or towards payment for purchases/services. However, as the funds are transferred back to your account, the transaction gets cancelled, if the amount is same and the time gap is reasonable. Hence, you will not have any tax liability.

In that case, treat the money transferred as a loan and when you transfer it back treat it as repayment of loan.

Please feel free to call/ revert in case of any doubts

Thanks and Regards

Abhishek Dugar

CA CS B.Com

No the primary account holder need not pay tax. It is just that the amount is received from one of the joint holder and again taken back.

It does not any matter. If you have documented the transaction then Primary account Holder needs not to pay tax.

Hello,

If the amount that you have transferred is transferred back in entirety then it should not be a problem. No tax to either of you.

Trust this clarifies your query.

Feel free to call / get back in case of further clarifications.

Thanking You.

Regards,

Rohit R Sharma

BCOM, ACA, LLB-GEN, CERT. FAFP