Fd on wife's name

@ Anjali, even in that case we have to see how much funds have been invested by each joint holder holder and interest is apportioned accordingly. In absence of any information , the deductor will deduct Tax in PAN of 1st holder (which would attract clubbing provisions) , therefore a declaration is required to be given to the deductor so that TDS certificate can be issued accordingly.

Kindly refer to the following rule for more information

RULE 37BA. (1) Credit for tax deducted at source and paid to the Central Government in accordance with the provisions of Chapter XVII, shall be given to the person to whom payment has been made or credit has been given (hereinafter referred to as deductee) on the basis of information relating to deduction of tax furnished by the deductor to the income-tax authority or the person authorised by such authority.

(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 referred to in sub-rule (1).]

(ii) The declaration filed by the deductee under clause (i) shall contain the name, address, permanent account number of the person to whom credit is to be given, payment or credit in relation to which credit is to be given and reasons for giving credit to such person.

(iii) The deductor shall issue the certificate for deduction of tax at source in the name of the person in whose name credit is shown in the information relating to deduction of tax referred to in sub-rule (1) and shall keep the declaration in his safe custody.

(3) (i) Credit for tax deducted at source and paid to the Central Government, shall be given for the assessment year for which such income is assessable.

(ii) Where tax has been deducted at source and paid to the Central Government and the income is assessable over a number of years, credit for tax deducted at source shall be allowed across those years in the same proportion in which the income is assessable to tax.

(4) Credit for tax deducted at source and paid to the account of the Central Government shall be granted on the basis of—

subject to verification in accordance with the risk management strategy formulated by the Board from time to time.

I just went went through this link.

/articles/all-about-scrutiny-assessment-17620.asp

It it seems that ITR processed and refund received might not the complete process of filling your returns for a given FY.    You have to wait for 1 year to complete the scrutiny if any for your case.

i was wondering why they are not completing the scrutiny immediately submitting ITR?

why is scrutiny happens only for selected people?  Scrutiny has to happen for every PAN, isn't it?

Firstly, FD interest can be offered to tax on receipt basis. So you may not need to revise return if it is not received. 

Secondly, on actual receipt of interest, take it to wife's individual savings account. She is not filing return anyway. There is no way dept. is gonna fish for returns for a small amount.

Hi All,

FD interest is not small.  It is in the range of INR 60K

I was thinking of skipping filing ITR but there have been TDS from bank and transactions are in TRACES database.  So there might be questions about why return is not filled.

2 days before I filled my wife ITR and claimed refund for INR 6K  (10% deducted by bank)

It was e-filing and e-verify.   E-Verify is complete.   Now I am waiting for processing status.

I am expecting the refund of 6K in wife's bank account.

Once that is done, I have to file my revised retun as adviced by experts here.

I guess, it would be INR 18K tax, I may have to pay as I am in 30% tax bracket.

My question is 

1] Should I wait for my wife's ITR processing and refund for filing my revised return?

2] I recived refund of INR 5K in my original return, How to adjust this return in my Revised return?  I mean the refund I recived in my original ITR is not valid as I am owing tax right? 

while filing my revised return, under which section should I mention this refund amount?

Let me know if you need any information from myside.  

Thanks for your time and advice.

Hi Rashi, I want to say something

Although as per S. 145 , well I'll quote it

"145. (1) Income chargeable under the head "Profits and gains of business or profession" or "Income from other sources" shall, subject to the provisions of sub-section (2), be computed in accordance with either cash or mercantile system of accounting regularly employed by the assessee."

I feel its good uptil there is no tax deduction.

There is another deeming provision which says 

S198. All sums deducted in accordance with the foregoing provisions of this Chapter shall, for the purpose of computing the income of an assessee, be deemed to be income received :

Provided that the sum being the tax paid, under sub-section (1A) of section 192 for the purpose of computing the income of an assessee, shall not be deemed to be income received.

Once tax has been deducted , so much of the amount is deemed to be as income received.So even if you are following cash system, you will have to treat sum part of it as income received (although not actually received) . 

I too used to believe that no notices would be sent for small amounts but recently I saw a notice and it involved only small amont and it was for interest income from SAVING ACCOUNT

Further you know yaar that the funds invested are of Mr. JaiHari only , he is also at higher slab rate therefor AO will levy highest penalty treating this to be as tax evasion case.

If I am wrong I request you to enlighten me 

Originally posted by : JaiHari678
	My question is    1] Should I wait for my wife's ITR processing and refund for filing my revised return?     2] I recived refund of INR 5K in my original return, How to adjust this return in my Revised return?  I mean the refund I recived in my original ITR is not valid as I am owing tax right?  while filing my revised return, under which section should I mention this refund amount? Let me know if you need any information from myside.     Thanks for your time and advice.

Hello Jai Hari

1. Nope, you do not need to wait, rather do it soon so that return can be processed earlier.

2 You should pay tax as per the revised return u/s 139(5)

Thanks.

i have started preparing for my revised ITR u/s 139(5) as suggested by you.

i was wondering what if my wife's ITR after processing won't generate the refund!

i wanted to use that money to pay my revised tax.

There could be some timing difference but refund due will definitely be granted, just like you got. I don't think you will get 18k as refund , which is the amount you have to pay.

Revised return can be filed till the expiry of 1 year from the end of relevant assessment year ,PROVIDED no assessment is done prior to that (excluding processing u/s 143(1)

Originally posted by : Z
	Hi Rashi, I want to say something Although as per S. 145 , well I'll quote it "145. (1) Income chargeable under the head "Profits and gains of business or profession" or "Income from other sources" shall, subject to the provisions of sub-section (2), be computed in accordance with either cash or mercantile system of accounting regularly employed by the assessee."   I feel its good uptil there is no tax deduction. There is another deeming provision which says  S198. All sums deducted in accordance with the foregoing provisions of this Chapter shall, for the purpose of computing the income of an assessee, be deemed to be income received : Provided that the sum being the tax paid, under sub-section (1A) of section 192 for the purpose of computing the income of an assessee, shall not be deemed to be income received.   Once tax has been deducted , so much of the amount is deemed to be as income received.So even if you are following cash system, you will have to treat sum part of it as income received (although not actually received) .    I too used to believe that no notices would be sent for small amounts but recently I saw a notice and it involved only small amont and it was for interest income from SAVING ACCOUNT   Further you know yaar that the funds invested are of Mr. JaiHari only , he is also at higher slab rate therefor AO will levy highest penalty treating this to be as tax evasion case.   If I am wrong I request you to enlighten me

@ Z,

as per my opinion, Sec 198 has to be interprited with ref to "immediately preceeding sections" i,e, those pertaining to TDS only.

The intent of the section is that no matter if payment has actually been made to the deducttee or not, TDS has to be deducted assuming the income has been accrued to the assessee.

While filing ITR 4, TDS sheet, I found columns requiring to mention the period in which TDS was deducted and whether the same would be utilized in the current AY. In my opinion, if the assessee has an option to claim TDS credit in the next year, it would be pretty obvious to show the corresponding income in the year of claim itself..

The above is entirely my opinion. Would like expert advice on the same.

"as per my opinion, Sec 198 has to be interprited with ref to "immediately preceeding sections" i,e, those pertaining to TDS only. The intent of the section is that no matter if payment has actually been made to the deducttee or not, TDS has to be deducted assuming the income has been accrued to the assessee."

Yes, the provision is in respect of TDS. But as far as intent part, well virtually in every section of TDS except for S. 192 , tax is to be deducted on accrural basis. You will find this concept in every section of the TDS be it 194J or C or w/e

I dont think they are repeating the same thing again, which was already repeated in each and every single section of the chapter of TDS except for 192

Section 198 , no where says about deducting the tax, it is for the sum already been deducted as per the foregoing provisions. Further If I take your view point then I will be making tax deduction on salary also on accrural basis which S. 192 has specifically provided to be on payment basis only

"In my opinion, if the assessee has an option to claim TDS credit in the next year, it would be pretty obvious to show the corresponding income in the year of claim itself.."
 

When sum has already been deemed to be as income received then by virute of S.5 you will have to offer it to tax in this Financial Year only and you can not defer it

"5. (1) Subject to the provisions of this Act, the total income of any previous year of a person who is a resident includes all income from whatever source derived which—

(a)  is received or is deemed to be received in India in such year by or on behalf of such person ; or

(b)  accrues or arises or is deemed to accrue or arise to him in India during such year ; or

(c)  accrues or arises to him outside India during such year :

Provided that, in the case of a person not ordinarily resident in India within the meaning of sub-section (6) of section 6, the income which accrues or arises to him outside India shall not be so included unless it is derived from a business controlled in or a profession set up in India."

I am looking up for further discussion, please do contradict me. 

Originally posted by : Z

"as per my opinion, Sec 198 has to be interprited with ref to "immediately preceeding sections" i,e, those pertaining to TDS only. The intent of the section is that no matter if payment has actually been made to the deducttee or not, TDS has to be deducted assuming the income has been accrued to the assessee."   Yes, the provision is in respect of TDS. But as far as intent part, well virtually in every section of TDS except for S. 192 , tax is to be deducted on accrural basis. You will find this concept in every section of the TDS be it 194J or C or w/e I dont think they are repeating the same thing again, which was already repeated in each and every single section of the chapter of TDS except for 192 Section 198 , no where says about deducting the tax, it is for the sum already been deducted as per the foregoing provisions. Further If I take your view point then I will be making tax deduction on salary also on accrural basis which S. 192 has specifically provided to be on payment basis only     "In my opinion, if the assessee has an option to claim TDS credit in the next year, it would be pretty obvious to show the corresponding income in the year of claim itself.."   When sum has already been deemed to be as income received then by virute of S.5 you will have to offer it to tax in this Financial Year only and you can not defer it "5. (1) Subject to the provisions of this Act, the total income of any previous year of a person who is a resident includes all income from whatever source derived which— (a)  is received or is deemed to be received in India in such year by or on behalf of such person ; or (b)  accrues or arises or is deemed to accrue or arise to him in India during such year ; or (c)  accrues or arises to him outside India during such year : Provided that, in the case of a person not ordinarily resident in India within the meaning of sub-section (6) of section 6, the income which accrues or arises to him outside India shall not be so included unless it is derived from a business controlled in or a profession set up in India."       I am looking up for further discussion, please do contradict me.

The quoted part has been specifically excluded in 198 as well. Hence, my opinion...

Can anyone help us with some case laws plz?

That exlusion is for 192(1A) only.

And the reason for that exclusion is that if we do not exclude it then there will be chain reaction

Employer pays tax of employee, that much becomes employees perqs. But since it becomes perqs which becomes salary income, there will be tax on it again 

192(1A) Without prejudice to the provisions contained in sub-section (1), the person responsible for paying any income in the nature of a perquisite which is not provided for by way of monetary payment, referred to in clause (2) of section 17, may pay, at his option, tax on the whole or part of such income without making any deduction therefrom at the time when such tax was otherwise deductible under the provisions of sub-section (1).

I would also like to have case study

I ain't getting any case law as of now, just another opinion in previous posts similar to our case is as under:

/experts/treatment-of-tds-in-case-of-receipt-basis-os-accouting-435560.asp

Further in Lloyd Insulation (India) Ltd., ... vs Department Of Income Tax

it states that 'As per the provisions of Rule 37BA read with Sec. 199, 'credit for tax deducted at source and paid to the Central government, shall be given in assessment year in which such income is assessable.'

I won't presume that the reverse is also correct. But it is something to ponder.. If the assessee has the option of not claiming TDS in CY, he need not show corresponding income as well.

In my case, when I did my wife's ITR which is ITR-1,  in section Sch TDS2, column 4 (Deducted Year),   I put value "2014" because it did not allow me to enter value "2015".

As per TDS (Form 16A), the tax deducted in Mar-2015.

Did I submitted my wife's return correctly?