Clubbing u/s 64

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 April 2015 If Mr. X makes a cash gift to Mrs. X. And Mrs. X makes an FDR out of the said gift and earns interest on it. As per clubbing provisions it will be clubbed in the hands of the husband. Now if bank makes TDS on it husband cannot claim the same as it is made against PAN of Mrs. X. How Mrs. X will claim TDS on it when she is not showing interest income in her return as the same is being clubbed in the hands of her husband? And if she still claims TDS without showing income how to explain this to IT authorities?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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15 April 2015 As per Rule 37BA, Clause 2(i), Where under any provisions of the Act, the whole or any part of the income on which tax has been deducted at source is assessable in the hands of a person other than the deductee, credit for the whole or any part of the tax deducted at source, as the case may be, shall be given to the other person and not to the deductee. Provided that the deductee files a declaration with the deductor and the deductor reports the tax deduction in the name of the other person in the information relating to deduction of tax. Request the deductor to file the revised TDS return so the tax will be reflected in your’s name in 26AS.

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