TDS Credit Made Simple By CBDT!
First published at this writer's blog www.taxworry.com
There was great difficulties in getting the tax credits in following types of cases
There are many other situation, like income added u/s 60 to 64. Now CBDT has inserted Rule 37BA of Income Tax Rule, by which the life of the deductee has been made easier . Now it will be possible with the backing of law that the person in whose hand certain income is being assessed can actually claim tax credit even though the TDS certificate shows name of other person.
Conditions attached
The deductee files declaration with the deductor that giving name , address, PAN of the person who has to get the tax credit.The deductor will issue certificate in the name of person mentioned in declaration filed by the deductee.
There was great difficulties in getting the tax credits in following types of cases
- A fixed deposit is in name of minor, the TDS certificate mentions his name. As per the I T Act, his income is added to one of his parents total income. The department while giving tax credit raises question regarding the certificate “issued in name of minor”.
- Any income generates on wife name which is clubbed with husbands income. But while giving tax credit of the TDS certificates issued, one faces difficulty as the department raises the question regarding the “name of wife” written on TDS certificate.
- TDS certificate issued in the name of partner or member , even though income is assessed in HAND OF firm or AOP OR HUF.
There are many other situation, like income added u/s 60 to 64. Now CBDT has inserted Rule 37BA of Income Tax Rule, by which the life of the deductee has been made easier . Now it will be possible with the backing of law that the person in whose hand certain income is being assessed can actually claim tax credit even though the TDS certificate shows name of other person.
The new Rule 37BA(2) states as under :
(2) (i) If the income on which tax has been deducted at source is assessable in the hands of a person other than the deductee, credit for tax deducted at source shall be given to the other person in cases where -
(a) the income of the deductee is included in the total income of another person under the provisions of section 60, section 61, section 64, section 93 or section 94;
(b) the income of a deductee being an association of persons or a trust is assessable in the hands of members of the association of persons, or in the hands of trustees, as the case may be;
(c) the income from an asset held in the name of a deductee, being a partner of a firm or a karta of a Hindu undivided family, is assessable as the income of the firm, or Hindu undivided family, as the case may be;
(d) the income from a property, deposit, security, unit or share held in the name of a deductee is owned jointly by the deductee and other persons and the income is assessable in their hands in the same proportion as their ownership of the asset:
Conditions attached
The deductee files declaration with the deductor that giving name , address, PAN of the person who has to get the tax credit.The deductor will issue certificate in the name of person mentioned in declaration filed by the deductee.
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