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Clubbing of spouse's interest income - tds credit for whom

23 April 2016

Hi All,

My Wife is receiving interest out of FDs from Bank after TDS. Interest Income is clubbed with my income under "Other sources". Now can I claim the credit for TDS also in my return ? If not, Why ? Dept. has disallowed the credit and sent a demand notice to me.

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11 Replies

Kaushik Joshi (Practising Chartered Accountant) (1527 Points)
Replied 23 April 2016

Dear Ram,
kindly claim tds credit in your wife's return. that way it'll be easy for you to get back your tds in time. the reason why they don't allow credit is because the tax is deducted

1 Like

Kaushik Joshi (Practising Chartered Accountant) (1527 Points)
Replied 23 April 2016

in the name of your wife.

1 Like

Karthik.V.Kulkarni (Chartered Accountant) (594 Points)
Replied 24 April 2016

If you are assessable for your wifes income then your wife has to give a declaration to that effect that the tds shall be credited to you. You can easily take credit for the clubbing of income.

Dhaval (Industrial Trainee) (142 Points)
Replied 24 April 2016

If income is clubbed, then TDS is ought to be allowed,

In your case, TDS which is disallowed by department may be due to some other reasons,

Kindly check

Ram Chandran (10 Points)
Replied 24 April 2016

Thanks Dhaval. No other reasons. In initmation u/s 143, i see TDS mismatch as the reason for disallowance of credit for TDS under my Wife's PAN.

Tribhuvan Aditya Singh (Student as well as Self-employed) (3710 Points)
Replied 24 April 2016

if you filled the Schedule-SPI in your itr, then they should have allowed the credit credit available on your wife's pan.

now i will suggest you to file a revised return or rectification u/s 154, whichever is applicable in your case, and remove your wife's income and tds on such amt and then submit. subsequently file return of your wife and claim tds refund.

1 Like

Punith (Article assistant) (107 Points)
Replied 25 April 2016

Agreed with Tribhuvan...

CS Advocate Abhishek Goyal (M Com FCS LLB M-AIMA ) (13542 Points)
Replied 25 April 2016

TDS cannot be claimed in wife's return as the interest income would be clubbed in the hands of husband so interest income is shown in husband's return because of clubbing and not in the return of wife. Therefore TDS cannot be claimed in wife's name and even if it is claimed it would be rejected since there is no corresponding income shown in her return against which TDS has been claimed.

In such cases rule 37BA comes to the rescue which provides that the deductee (wife) should file a declaration with the bank mentioning the other person's (husband) name, PAN and the reason for crediting the income in his name. Than the bank will not only credit the income in that other person's name but also deduct the TDS which can be claimed in his return.

Kaushik Joshi (Practising Chartered Accountant) (1527 Points)
Replied 25 April 2016

I agree with all the experts. But for practical purposes I recommend claiming it in wife's return. that'll be easier as compared to requesting bank to rectify their tds return. but for all further years follow Mr. Abhishek Goyal.

Kaushik Joshi (Practising Chartered Accountant) (1527 Points)
Replied 25 April 2016

procedure provided by the expert.

Ram Chandran (10 Points)
Replied 25 April 2016

Thanks all for your expert advise. From now, My wife will give a Form 15G to Bank and i will pay it directly as advance tax under my PAN. Unnecessary procedures and time delays can be avoided.