23 March 2018
Rule 37BA, Clause 2(i) provides that “If the income on which tax has been deducted at source is assessable in the hands of a person other than the deductee, credit for tax deducted at source shall be given to the other person in cases where the income of the deductee is included in the total income of another person under the provisions of section 60, section 61, section 64, section 93 or section 94. 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.” The said declaration shall be filed by the deductee stating the name, address, permanent account number of the person to whom credit is to be given, payment or credit in relation to which credit is to be given and reasons for giving credit to such person. Thus, if you encounter any such situation then a declaration by deductee shall be given to deductor before deduction of TDS. If this procedure is followed then during filing of return this issue can be avoided. However, in case if TDS has already been deducted by the bank then deductee shall approach bank to revise the return filed.
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