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Solve the TDS Query

Poornima (Search on.... for knowledge) (129 Points)

08 February 2010

Mr. X and Mrs. X have jointly made a fixed deposit of Rs.50,00,000/- with a nationalized bank on which interest of Rs.4,00,000/- have got accrued to them for F.Y. 2009-10. Such deposit was made by both the persons by making equal contribution of their past savings. Now the Bank wants to deduct TDS of Rs.40,000/-. Please enlighten us that in whose name the TDS certificate would be issued by the Bank? If the TDS certificate is issued only in the name of Mr. X than how Mrs. X would claim TDS attributable to her proportionate interest income? In such a case how the TDS claimed by Mr. X and Mrs. X in their respective Returns of Income would get reconciled with particulars in 26AS?

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8 Replies

CA.Tarun Maheshwari (CA, DISA) (7150 Points)
Replied 08 February 2010

Practically, the first nameholder of FD is liable for TDS Deduction. So, TDS Certificate is issued in the name of the first holder of FD.

Amir (Learner) (4016 Points)
Replied 08 February 2010

Dear Poornima,

Simply request the bank to issue two TDS certificates - one in the name of Mr. X & the other in the name of Mrs. X

Look if the above is not possible then I have seen cases where Bank has specified the name of Joint owners in the TDS Certificate..

Even in this case, I don't think AO will entertain ur claim so easily, he has to be explained of the facts that only partial TDS is claimed in the return of Mr. X because half of the income is attributable to Mrs. X

Poornima (Search on.... for knowledge) (129 Points)
Replied 08 February 2010

But is it possible to claim TDS in two returns??

As AO will come into picture after opening of return for assessment

Do explain....

Ashish Sharma (Service) (1028 Points)
Replied 08 February 2010

for reconciliation with 26AS ,In my view, as for qtrly return of TDS bank needs PAN no. so at the time giving PAN no. one must disclose the bank to show the tds on both holders equaly in other case bank will issue TDS cerificate on the name of both holder mentioning Pan No. availiable. if u have get the TDS certificate jointly then deposit I.T. return with the interest income same portion u deposit the F.D. amount and in claiming refund u can show your TDS certificate to ITO

Amir (Learner) (4016 Points)
Replied 08 February 2010

Dear Poornima,

Claim TDS proportionately in the return of Mr. X & Mrs. X

Now, AO will obviously not allow this thing & will not process the refund of Mrs. X, Therefore one has to follow up with the AO regarding the status of refund, then AO will specify his objection & then u can explain the circumstances to him...

1 Like

CA Dhaval Ganatra (CA) (185 Points)
Replied 08 February 2010

i m nt sure bt may b its nt posb 2 hav propotinate claim

first name holder gets certificate

hwever 2nd one can get it by applyn 2 bank statn dat person in 2nd name has higher contri

sheetal (Article Assistance) (37 Points)
Replied 14 February 2010

I agree with Tarun Sir. TDS is claimed by the only first holder only.

Murali Krishna (Employee) (350 Points)
Replied 18 February 2010

The logic of Govt. behind TDS is to earn tax bit earlier.

So with the existing details try to ascertain the tax for both Mr and Mrs X, find who is having more tax liability, depends on the result arrived, request bank to issue TDS certificate on him or her (either Mr. X or Mrs. X)