Multiple choice

Which of the following is correct about joint deposit account?

  1. When nomination is proposed to be made, it should be made by all of them.

  2. When account is to be closed, it should be done by all even if the account is either or survivor, where specific authority to do so has not been obtained in the account opening form.

  3. Garnishee order will be applicable on this account on pro-rata basis if the orders are received in the name of one of the account holders.

  4. Bank cannot use the right of set-off a loan in the name of one of them.
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C Correct answer
Explanation

Issued under Sec. 226(3) of Income Tax Act, 1961 by an Income Tax Officer.

Even though the order is received in a single name, it attaches balance (pro-rata) in any joint account maintained by such person.

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