Whome it is Income

This query is : Resolved

Shankar Rao (Querist)
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20 October 2010 Dear All

Un uncle had 4 Sons. During 2003 2nd Son died in Accident. Un uncle filed case in court for accident claim. During 2009 my uncle died.
During Sep 2010 as per Court order Insurance Company gave compansation along with Interest of Rs.4,50,000 to my cousins (as my uncle was died)on this Interest Company made TDS & Issued form 16A (PAN not Mentioned) in my uncle's name.
Summary of This case
1) Compansation & Interest awarded to my uncle but after his death
2) Compansation & Interest received my 3 cousins as my uncle was no more
3) Form 16A Issued in Uncle's Name but Cheques Issued in my cousins name
My question is
Whether this Interest Income is belongs to my Late Uncle or My Cousins
If it is Income of my uncle how shall I file his return of Income as he was no more to obtain his PAN No
Kindly Solve this problem

Thanking You

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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21 October 2010 All the three cousins will file separate return as a legal representative of your uncle.

O.D.SHARMA

O.D.SHARMA (Expert)
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21 October 2010 Hi,company cannot issue cheques &TDS certificates in Diff. name.you can ask company to issue TDS forms in cousin' name & file returns.

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taxindiaconnect

taxindiaconnect (Expert)
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21 October 2010 The reply of Mr. OD sharma seems to be logical. Though for the income of your deceased uncle, your cousins are responsible for filing ITR in the proportinate share.

venkatraman shrinivas

venkatraman shrinivas (Expert)
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21 October 2010 One amongst the cousins by consensus mostly the eldest of them can file a return as legal representative of the deceased. They can also file an affidavit that th income belonged to their late father and the income is returned by he legal heir in a fiduciary capacity. This is because section 199 of the Act lays down that credit for the TDS would be extended only in the hands of he person in whose name it is assessed.There after by virtue of the succession Act hey can all share the remainder equally or according to their understanding, which is not questionable, if there is understanding amongst them.

Ranjeet

Ranjeet (Expert)
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22 October 2010 company sould issue TDS certificate in the name of cousin because it is income in his hand and uncle is no more. cheque is issued correct TDS Certificate should be corrected.