18 September 2022
My mother has received CPC notice for tax claimed under 37 BA(2) against TDS deducted for deceased husband. My mother and father held joint fixed deposit accounts and after his death the joint FD account was continued since bank did not allow transfer of the FD account from primary account holder (my father) to secondary account holder (my mother). After my father's death in 2018, the bank continued to deduct the income tax under my father's PAN. For AY 2021, I have claimed the TDS deducted under my father's PAN in the hands of my mother. As per section 37 BA(2) clubbing provision of Income Tax Act, I have claimed the TDS, but my mother has received notice. I have some reference article in regards to same: http://taxscoop.in/entries/income-tax/claiming-tds-for-income-under-clubbing-provisions
Query: How can I resolve this issue and reject the demand issued and close the matter. I would appreciate if any of the experts help me resolve my query.
20 September 2022
In the income tax portal, the demand raised would be appearing under Pending actions>>Response to outstanding demand-> submit your response as disagree with the demand, mentioning the appropriate reason. If issue persists, try meeting the jurisdictional ITO or take some professional assistance. Probably the more correct way, would have been: 1.You would have disclosed only that part of income in your mother return which was reflecting to her credit 2. And for your deceased father, you would have registered your mother as legal representative and filed his return being a representative assessee. I understand these steps are cumbersome but could have avoided the disputes.
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