Taxability

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If we have joint FD and reives interest on this after deducting TDS. then in whose this reflect in 26AS and at the time of refund then whose account are given to take refund.
Replies (4)

First holder, unless specified......

 

Means this is joint account. and in joint account their is 50:50 share of each of them. so it is very difficult to find out the first or second holder.

When TDS is deducted form the joint account, it is credited to first holder's PAN. While filling return you can transfer any such share (of TDS) to another PAN holder's account.

Hi Lokesh!

The aforesaid issues have been dealt in detail by CBDT vide its circular which in nutshell advises as under :

1. If Bank has definite information about the beneficial ownership of the deposit(s), the interest payable under a joint account can be aggregated with the amount of interest payable by that person. Otherwise to any one of the payees in their separate or independent accounts. 

2. The certificate of deduction of tax at source under section 203 of the Act will be given to the person in whose name the interest on the joint account has been aggregated.

3. Credit for the payment of tax deducted at source under section 199 of the Income-tax Act will be given to the person in whose name the certificate under section 203 has been issued.

4.If any objection is taken to the deduction of tax at source in the above manner or it is contended that the joint account holders constitute a separate person and no deduction of tax at source should be made, deductee can file affidavits or statements in the manner laid down in the proviso to sub-section (1) of section 194A of the Act. The Bank the interest may act according to the affidavits or statements which the joint account holders may file before him in discharging his responsibilities under section 194A of the Act.

 

 


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