Whose income the joint-FD interest actually is
The rule is about the money, not the names. Interest on a joint fixed deposit is taxable in the hands of the person who provided the funds, the real owner. It is not divided just because two people are on the deposit, and it does not automatically belong to whoever is the first or primary holder.
The first holder only matters for mechanics: the bank keys TDS and its reporting to that PAN by default. But the taxable owner is decided by whose money went in. So if your resident parent funded the whole deposit and you were added purely as a joint name, the interest is 100% your parent's income, and 0% yours, regardless of whose name is first. This is why being on the account does not, by itself, create a tax bill for you.
Why it still shows in your AIS, and the duplicate-reporting quirk
The entry is there because the bank reported it. Under Section 285BA read with Rule 114E, banks file a Statement of Financial Transactions listing interest paid against the account's PANs, and since CBDT Notification No. 1 of 2023 interest is reported with no minimum threshold at all, so even a small FD shows up.
The complication for joint accounts is well documented: the reporting can post the full interest against each joint holder's PAN, not a split. So your AIS can show the entire interest that is really your parent's, which then does not match your return, or shows against you when you had no reason to file. That mismatch is exactly what the compliance portal picks up and can turn into an e-campaign query. The data is not wrong to exist, it just needs the correct owner attached, which is the wider AIS-mismatch situation applied to a joint deposit.
Clubbing does not make it yours
Clubbing does not apply between you and your parent, so it cannot make the interest yours. Section 64 can move income between family members, but only in defined cases: Section 64(1A) clubs a minor child's income into the higher-earning parent, and Section 64(1) clubs certain spouse income and income from assets transferred to a spouse without adequate consideration.
None of that reaches a parent and an adult child. Once you are a major you are a separate taxpayer, so the parent's FD interest is not clubbed into you, and equally you are not taxable on it just because your PAN is on the deposit. The interest stays your parent's under the real-owner rule, and clubbing changes nothing. These are the current Income-tax Act, 1961 sections that govern a return for FY 2025-26 filed in 2026; they are re-homed under the Income-tax Act, 2025 from FY 2026-27, but the position is the same.
The India-side fix, step by step
The correction is straightforward once the owner is settled. Your parent, as the real owner, declares 100% of the FD interest in their own return under Income from Other Sources, so the income is taxed in the right hands. You then open the AIS feedback facility on the wrong entry and mark it as "Information relates to other PAN," pointing the interest to your parent's PAN, and you reference that feedback if any mismatch notice arrives. If the bank deducted TDS against your PAN, Rule 37BA lets that credit be assigned to your parent, the person actually assessable, through a declaration to the bank, so the tax and the credit sit together.
A quick worked example. Arjun in Dubai is a joint holder on his father Suresh's 40 lakh rupee FD, which Suresh funded entirely and which earns about 2.8 lakh rupees of interest a year. The bank reports the full 2.8 lakh against Arjun's PAN as well, so it appears in Arjun's AIS. Arjun is not taxed on any of it: Suresh declares the 2.8 lakh in his own return, Arjun marks the AIS entry as belonging to Suresh's PAN, and if TDS was cut against Arjun it is reassigned to Suresh under Rule 37BA. The mismatch closes without Arjun owing a rupee.