Clubbing of income u/s 60 to 64 of income tax act

Saurabh Maheshwari (B.com,ACA) (5923 Points)
Replied 18 July 2013

Its really mismatch between Theory and Practice............No Idea Sir...

ayesha (mcom) (1185 Points)
Replied 18 July 2013

yes it wont be clubbed as tds has been issued in name of wife.so income taxable in wife's name

Deepak Gupta (CA Student) (15922 Points)
Replied 18 July 2013

As per Rule 37BA, Clause 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.
.
Now, in your case the declaration has not been filed and TDS Certificate has already been issued by the bank. You may approach the bank with the revision request. But, I am not sure that bank will be willing to revise the TDS return, if you file the declaration now.

2 Like

CA.Ajay Kumar Gupta ( CA) (38 Points)
Replied 18 July 2013

Originally posted by : \|)eep @ k Gupt/\
	As per Rule 37BA, Clause 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. . Now, in your case the declaration has not been filed and TDS Certificate has already been issued by the bank. You may approach the bank with the revision request. But, I am not sure that bank will be willing to revise the TDS return, if you file the declaration now.

CA.Ajay Kumar Gupta ( CA) (38 Points)
Replied 18 July 2013

bank is not going to revise the return.

what should be taken in both the returns

Akshata (CA Final ) (324 Points)
Replied 18 July 2013

Agreed with deepak..bank will not revise TDS return now..

U can go ahead with the TDS certificate issued in wife's name & if any intimation arises, corroborate the same with the documents u have..which show the clubbing...

Dipjyoti Majumdar (CA in service & CS. dipmaj@ rediffmail.com ) (3468 Points)
Replied 18 July 2013

In spite of clubbing provisions in place the wife will offer the interest income for taxation and claim the TDS thereon. Because technology has not been upgraded to include such softer issues. There should be representation from ICAI to CBDT.

Regards,

mishti (nil) (82 Points)
Replied 19 July 2013

clubbing provisions hav to be applied irrespective of the fact that tds is deducted in wife's hand. however while filing wife's return u may take credit of tds. to support this view, i quote section 190 which says that credit of tds will be available to the deductee only. At a downside, u may have to pay tax in huband's return of income and bear the blockage of fund to the extent of tax paid in husband till refund (if any ) is recd in wife. i hope this is helpfull.

HSMANOHARAN (PRACTISING COST ACCOUNTANT) (22 Points)
Replied 24 July 2013

let the income clubbed in the hands of the husband and pay tax, file the return for the wife without disclosing the income and claim refund, this is only the solution in present situation.

CA JATINDER KAPOOR (JOB) (305 Points)
Replied 28 July 2013

If husband trfd the amount by account paying cheque to his wife then husband will shows in his return as interest free loan given to his wife and his wife deposited such money in the fixed deposited for earning interest income then clubbing provission will not be applied because interest will loan is not a tranfer and therefore wife will claimed such income in this return and claim refund on such income.

You may need to go bank for revising the TDS return.

1 Like

Amaresh (working as freelancer) (42 Points)
Replied 10 March 2015

Dear Sir,

I have a property in my son's name who is working as a Software Engineer. Myself and my wife who is also employed. Now we want to take a housing loan for Rs. 50 lakh from a bank for construction of new house ( existing old house will be demolished)The loan payment will be shared by myself and my wife in the ratio of 60:40.

My question is,

1. Can me and my wife can claim income tax exemption under section 24b on the above payment.

Regards,