Clubbing of Income

Can you pls tell what is the source of the F.D Investment?

If the source of such deposit  is from your salary or business income, then you can club the whole maturity amount pertaining to your wife's under your return and can reduce the Tds deducted by bank from your tax liability after calculating the liability.

If the source of deposit is from your wife's income, no question of clubbing, it should come under your wife's return.

Dear Shruthi,

The source of Income for F. D. is mine. 

My question is that the TDS deducted in the name of my father who has no PAN CARD and Interest income is also shown in father's name in the bank.

Can I club the total Interst income & TDS  from 2007-08 in my return. Or submit return in the name of my father who has no PAN CARD.

as you have added father for interest gain, bank considered the father as 1st person of FD, paid high interest and deducted TDS from him. however bank must have informed you to submit 15G or 15H in advance prior to TDS event, which u ignored, 

now you have nothing in hand, you have to file return of father and we are doubtful about the credit of TDS in absence of pan number.

Actually, if the bank has transferred the whole amount of FD maturity to you wife's account, then you can club such income and take that TDS as yours and can deduct from your tax liability provided you get the tds certificate from the bank.

If your bank has not shifted the maturity amount from your father's account to your wife's, then you cant club that income, you must file a separate return for your father and before filing return try to get PAN card for your father.

PAN obtaining process is been easy only nowadays. so if you obtain befor filing return you can claim tds deduction. If you fail to obtain, then TDS cant be claimed.

Originally posted by : U S Sharma
	as you have added father for interest gain, bank considered the father as 1st person of FD, paid high interest and deducted TDS from him. however bank must have informed you to submit 15G or 15H in advance prior to TDS event, which u ignored,  now you have nothing in hand, you have to file return of father and we are doubtful about the credit of TDS in absence of pan number.

Agreed with U S Sharma.

Amount of FD and whole Interest amount transffered to my wife account . She has PAN Card. 

Then you can very well club the interest income in your return and can claim TDS against your whole tax liability. Now no need to worry about your father's PAN.