Live Course on Drafting of Appeal and Reply of Penalty Notice by CA Sachin Sinha. Register Now!!

Crediting of Joint FD interest in 26AS

Kk Nair (154 Points)

26 August 2023

TDSs from interest in the case of Joint FD accounts are deducted and credited by Banks in 26AS of Primary account holder. Can it be possible to split the amount of TDS shown in 26AS in two parts and shown in ITRs of both the account holder separately. In this case the amount of TDS shown in 26AS and that of ITRs will differ. Experts are requested to kindly elucidate.
Thanks in advance.

Reply
Follow
Share

12 Replies

Asha Kanta Sharma (Manager - Finance & Accounts) (10529 Points)
Replied 26 August 2023

I don't think we should do this split

prasad Nilugal ( GST Practitioner & Accounts ) (14221 Points)
Replied 26 August 2023

Yes agree, You Can not Split TDS reflected in 26 AS of primary account holder.

Manish (CA) (1079 Points)
Replied 26 August 2023

Ensure income clubbing is done correctly in case they are husband and wife.

To split TDS, transfer the TDS credit to other person by filling details (PAN of other person) in ‘Claimed in the hands of other person …’ of schedule TDS2 in ITR.

The other person can claim that transferred TDS in his ITR by filling PAN of the above person.

1 Like

RAJA P M ("Do the Right Thing...!!!") (127417 Points)
Replied 26 August 2023

Yes, I agreed with Mr Manish...

The TDS can be split and transfer to through ITR.

prasad Nilugal ( GST Practitioner & Accounts ) (14221 Points)
Replied 26 August 2023

In which section of the income tax Act, it is written that TDS reflected in 26 AS Can be split and transfer to any other person , any notification, circular , also quriest has not mentioned relationship between joint account holder in query to club the income.

Manish (CA) (1079 Points)
Replied 27 August 2023

Originally posted by : prasad Nilugal
	In which section of the income tax Act, it is written that TDS reflected in 26 AS Can be split and transfer to any other person , any notification, circular , also quriest has not mentioned relationship between joint account holder in query to club the income.

Rule 37BA and case - Anil Ratanlal Bohora Vs. ACIT, ITA No.675/PUN/202.

1 Like

Kk Nair (154 Points)
Replied 27 August 2023

Thanks everyone for the time taken to go through the Acts and Rules. I think the conclusion is that one cannot split the TDS at his own and the deductor has to be given instructions in whose account the interest is to be credited giving all details including PAN of the other person.

prasad Nilugal ( GST Practitioner & Accounts ) (14221 Points)
Replied 27 August 2023

Yes, One Can not Spilt TDS reflected in 26 AS at his own , As per my understanding query is TDS Spilt at his own while filling Income tax return and accordingly I had replied earlier.

Kk Nair (154 Points)
Replied 27 August 2023

Thanks to everyone for the efforts

prasad Nilugal ( GST Practitioner & Accounts ) (14221 Points)
Replied 27 August 2023

Welcome...................

RAJA P M ("Do the Right Thing...!!!") (127417 Points)
Replied 27 August 2023

You are welcome...

(The deductor can't be separate deduction for the joint account. You can split the TDS and c/f to the another account holder. Better to consult a professional)