29 July 2012
Hello Experts I need your advice in filing my wife's tax return for AY2012-13. I have FD in my wife's name where the Bank has deducted TDS from interest. However, as per clubbing provisions, i have included her interest income in my return and paid tax thereon. Now my wife just needs to claim TDS refund.
My query is: How to file wife's tax return viz does she need to show interest income under schedule OS and then show negative income under schedule SPI so that her income will be nil? or do not show any income and just claim TDS?
Appreciate your advice at the soonest so i can file her return before the due date.
29 July 2012
1. In your Return you have to show the Income under the Schedule SPI.
Give PAN of your wife in the column provided. . 2. Interest income of wife is required to be excluded from her total income as it is being clubbed in husband's income. . The meaning of "exclude" is different from deduction. We can't show deduction U/s 57 against the Interest Income included U/s 56 due to the fact that under section 57 all the deductions have been exclusively defined. . So, if we are not showing such income in her return then we are not hiding anything as in the light of clubbing provisions the income belongs to the husband only. . The TDS schedule may be filled up but claim of TDS is not required to be made. So in the column of TDS to be credited, you may write as "0" . Show in Exempt Income , Schedule "EI" I think, the disclosure requirement will be complied. .
29 July 2012
Many Thanks, Mr. Paras for the prompt and detailed advice. For my better understanding, you have said in 2nd last para of your response :"..but claim of TDS is not required to be made..you may write as "0" " My query is that my wife needs to claim the refund of the TDS deducted by bank. Hence, she should be claiming it under sch TDS2, is that correct?
As you have suggested, i too think it would be a good idea to show EI in wife's return. However, my confusion is how the ITO will know why she is claiming EI and TDS/Tax Refund?
29 July 2012
When the Income is being clubbed in your hands, I do not think it proper to avail the option of claiming TDS in your wife's Return, without treating her non-income as Income . . The ITR formats are not perfect or complete in many respects. Its the department only which can address such matters. . Sometimes the assessee willingly can not furnish many details due to such shortcomings or limitations. . Either, you have to be keep yourself ready to reply the department or simply leave the clubbing exercise on the department. .
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