05 August 2016
hi this is Sumit working in one of PSU Bank a customer whose having gud amount of deposit in our branch . her deposit is with jointly with her husband . first name in deposit is hers but now she want us to deduct tds in name of her husband and tds certificate to be issued in her husband name. is there any provision in income tax act for the same please guide us.
06 August 2016
If the bank knows that fund has been deposited by husband and he is the beneficial owner then TDS can be deducted in the name of husband.
06 August 2016
Fully concur with Sir's reply. I wish to add that there is a provision under Income Tax rules to give effect to the above item.
She should give declaration in written that income is liable to be clubbed in her husband's name.
Rule 37BA. (1) Credit for tax deducted at source and paid to the Central Government in accordance with the provisions of Chapter XVII, shall be given to the person to whom payment has been made or credit has been given (hereinafter referred to as deductee) on the basis of information relating to deduction of tax furnished by the deductor to the income-tax authority or the person authorised by such authority. (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 referred to in sub-rule (1).] (ii) The declaration filed by the deductee under clause (i) shall contain 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. (iii) The deductor shall issue the certificate for deduction of tax at source in the name of the person in whose name credit is shown in the information relating to deduction of tax referred to in sub-rule (1) and shall keep the declaration in his safe custody. (3) (i) Credit for tax deducted at source and paid to the Central Government, shall be given for the assessment year for which such income is assessable. (ii) Where tax has been deducted at source and paid to the Central Government and the income is assessable over a number of years, credit for tax deducted at source shall be allowed across those years in the same proportion in which the income is assessable to tax. (4) Credit for tax deducted at source and paid to the account of the Central Government shall be granted on the basis of— (i) the information relating to deduction of tax furnished by the deductor to the income-tax authority or the person authorised by such authority; and (ii) the information in the return of income in respect of the claim for the credit, subject to verification in accordance with the risk management strategy formulated by the Board from time to time.]
07 August 2016
I want to ask one more point into this as customer is our banks ex staff so she is getting extra 1 % interest so if her request for issuing tds certificate in her husbands name can be considered and 1% extra can be given
07 August 2016
This, in my opinion, will have to be seen as per banks policy. Policy generally do not allow this, it must be written specifically in FDR related documents. Kindly check and please do let us know.
Seetharaman Sir, if you also have some points to share with us then please go ahead.
07 August 2016
Z you rightly said. 1% extra will be allowed only to ex bank employee not to her husband. So if you pay 1% extra interest treating it as deposit by ex employee TDS can't be deducted in the husband's PAN.
CAclubindia
