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need ur advice

SUDHIR & PRADEEP JI (CA FINAL+LLB + DISA) (2299 Points)

17 December 2010

Dear All,

I have face a problem pls advice me wht shld i do......

one of my Client has transfered it property to his wife...

& the wife as rentout tht property and the income from tht property has been clubed in the Husband Income..

now, the wife rent comes under TDS provision so now whose PAN number shld i give..

The husband or its wife..

and if TDS is being deducted then who can claim it........

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9 Replies

vicky (account manager) (35 Points)
Replied 17 December 2010

Wife pan is applicable As property is in the name of wife..she will issue bill of rent to tenant and tenant deduct tds on that rent billl.

SUDHIR & PRADEEP JI (CA FINAL+LLB + DISA) (2299 Points)
Replied 17 December 2010

Dear Vicky..

but the rent income is being clubed in her husband income...........

vicky (account manager) (35 Points)
Replied 17 December 2010

so,file her wife income separately

i dont think his husband pan is applicable as there is no logic without any ownership of property he can earn rent .....

SUDHIR & PRADEEP JI (CA FINAL+LLB + DISA) (2299 Points)
Replied 17 December 2010

dear tell me one thing if the income of wife is getting clubed in her husband income.. then how can she file an another return

student (WORKING) (757 Points)
Replied 17 December 2010

when the clubbing provisions apply ,all things are clubbed i.e. if u receive any deduction on the income which is to be clubbed then that deduction will be allowed to the transferor.

so in ur case also tds will be claimed by husband & not wife.

any further query do ask

SUDHIR & PRADEEP JI (CA FINAL+LLB + DISA) (2299 Points)
Replied 17 December 2010

Dear laxmi..

But there is one more problem tht the amount of rent is being recevied on the name of wife through cheque...

then how can the other person (the deductor) can issue the FORM 16A in the name of Husband

CMA. CS. Sanjay Gupta ("PROUD TO BE AN INDIAN") (114215 Points)
Replied 17 December 2010

Originally posted by : PRADEEP & SUDHIR JI
	Dear laxmi.. But there is one more problem tht the amount of rent is being recevied on the name of wife through cheque... then how can the other person (the deductor) can issue the FORM 16A in the name of Husband

Just give the PAN no of the husband and a declaration that TDS on such income should be shown on the name of her husband in the return. The deductor will deduct TDS and while filing return mention the name of her husband and give his PAN no. Husband will get TDS credit. No problems for deductor as he has deducted TDS on rent and he also has a declaration from the party.

Sometimes these kind of situation arises and need to tackeled this way.

3 Like

CA Asfar Hashmi (Research Associate) (81 Points)
Replied 20 December 2010

Originally posted by : laxmi
	when the clubbing provisions apply ,all things are clubbed i.e. if u receive any deduction on the income which is to be clubbed then that deduction will be allowed to the transferor. so in ur case also tds will be claimed by husband & not wife. any further query do ask

Dear Laxmi,

Just to correct you, its not necessary that deduction will be clubbed (litigative but somewhat settled). Refer [TN Vasavan v CIT (1992) 197 ITR 163 (Ker)]

Cheers !!

Darryl P. Martis (Professional) (29 Points)
Replied 11 May 2011

Dear Mr. Sanjay Gupta/Asfar Hashmi,

Can you please tell me if there are any case laws or judicial rulings regarding TDS credit allowed to the taxpayer in whose hands income is finally assessed. One case law I am aware of is CIT vs Malibu Estates (2007) (Del), I was wondering if you are aware of any similar decisions from Mumbai High Court or Supreme Court.

Many Thanks,

CA Darryl Martis