Tax deducted at source (TDS) credit can now be availed by persons other than the deductees. This has been clearly articulated by the Central Board of Direct Taxes (CBDT) in a new rule on TDS credit availment.
Bringing relief and certainty to taxpayers, the CBDT has also spelt out the situations and the procedure through which the tax credit will be made available for persons other than deductees.
The credit for TDS will be allowed to persons other than the deductees only in cases where the relevant income is assessable to income tax in the hands of such other person. The new CBDT rule has now settled the position that a person who is liable to pay the tax should be eligible for the TDS credit.
where the deductees are joint owners of shares, property and deposits, the CBDT has now said that the TDS credit would be available to the respective joint owners in proportion of their ownership of the asset. Hitherto, no mechanism was available by which all the joint owners in shares, deposits or property could have the right to claim TDS credit.
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