Hi All,
My Wife is receiving interest out of FDs from Bank after TDS. Interest Income is clubbed with my income under "Other sources". Now can I claim the credit for TDS also in my return ? If not, Why ? Dept. has disallowed the credit and sent a demand notice to me.
If income is clubbed, then TDS is ought to be allowed,
In your case, TDS which is disallowed by department may be due to some other reasons,
Kindly check
Thanks Dhaval. No other reasons. In initmation u/s 143, i see TDS mismatch as the reason for disallowance of credit for TDS under my Wife's PAN.
Agreed with Tribhuvan...
TDS cannot be claimed in wife's return as the interest income would be clubbed in the hands of husband so interest income is shown in husband's return because of clubbing and not in the return of wife. Therefore TDS cannot be claimed in wife's name and even if it is claimed it would be rejected since there is no corresponding income shown in her return against which TDS has been claimed.
In such cases rule 37BA comes to the rescue which provides that the deductee (wife) should file a declaration with the bank mentioning the other person's (husband) name, PAN and the reason for crediting the income in his name. Than the bank will not only credit the income in that other person's name but also deduct the TDS which can be claimed in his return.
Thanks all for your expert advise. From now, My wife will give a Form 15G to Bank and i will pay it directly as advance tax under my PAN. Unnecessary procedures and time delays can be avoided.
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