Tds and clubbing of income

Wife will have to file return and get the refund of TDS.......

Husband  should add the interest income(inclusive of TDS) in his declaration without actual credit of TDS.

You committed a mistake. You should have filed a declaration to the bank (deductor) under Rulr 37BA that the interest income will be clubbed with your income and thus TDS be credited in your PAN. Now you may approach bank with the declaration and request the bank to file a correction statement replacing your Wife's PAN with your PAN. Once the bank do it you will get the credit.

Rule 37BA of Income Tax Rules 1962: TDS Credit-Section 199 Rule 37BA : Credit for tax deducted at source for the purposes of section 199 (Chapter: VI - Deduction of Tax at Source) (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.

Rule 37BA of Income Tax Rules 1962: TDS Credit-Section 199 Rule 37BA : Credit for tax deducted at source for the purposes of section 199 (Chapter: VI - Deduction of Tax at Source) (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.