Clubbing of rental income of spouse

TDS 367 views 2 replies

NANDAGOPAL

Retired Professional

21 Points Joined April 2018

My wife receives rental Income of the property transferred to her by me without any consideration. She is not professionally qualified. As per rule under 64 I have clubbed her rental income with my income and filed my Income Tax return. My wife also files tax return since she invests PPF. In her tax return, I am not showing her rental income since I have clubbed with mine and so her income is less than 2.5 lacs excuding the rental income . However she is unable to claim TDS deducted in her rental income. The IT dept looks at her 26 AS statement and states that there is mismatch. There is no provision in E-Filing for linkage of PAN numbers of my wife with mine to indicate that the clubbing has been done. I am unable to convince IT department through Grievance about this issue. Three years of the TDS is yet to be refunded. What is the solution for the above issue? Thanks

Attached File : 2384999 20180409192109 it memo kvm rani nandagopal 17 18.pdf downloaded: 68 times

Replies (2)

A B Kundu

Professional

1427 Points Joined August 2012

The department compares the 26AS with the return filed by the assessee, so you have to offer such income in the return minimum what has been reflected in the 26AS. As you have not shown the rental income in your wife's return but such income appeared in her 26AS, the department is sending demand notice or saying mismatching. Hence, you should not have clubbed your wife's income with yours where tds is deducted under your wife's PAN.

In this situation you can't revise both of your return as the time limit for revising the return had already been expired for all the 3 years. Further, Rectification U/s 154 can't be possible as these are not mistakes apparent from record. I think you can contact with the jurisdictional assessing officer stating the whole matter and if possible, then you can apply U/s 264 to Principal Commissioner for seeking revision of the order passed against those assessment years.

Srinivasa Ganesh

Article Assistant

456 Points Joined December 2014

Hi you can CLAIM tds which is deducted in your spouse name . YOU CAN SHOW TDS AMOUNT IN YOU R RETURN WITH DEDUCTEE DETAILS IN TDS SCHEDULE WHERE YOU NEED TO MENTION DEDUCTEE TAN NAME OF DEDUCTEE HOWEVER YOU NEED TO ENTEr
Deducted in the hands of spouse as per section 5A or any other person as per rule 37BA(2) (if applicable) income and tax thereon and enter same in next column you will get TDs credit of your spouse.
for further clarification please reply