Income tax liability

1. In respect of deposit(s) in joint names, if there are also deposits in individual names with the same Bank, should the interest on deposit(s) in joint names be aggregated with the interest on deposits in individual names or not   for the purpose of determining the limit of TDS up to which the interest income in a financial year does not require any deduction of tax at source.
2. 
   In whose hand should the interest be added -
   If the interest on a joint account has to be aggregated with the interest income on deposit in individual names should it be aggregated with the first name or the second name or either ?
3. Who will claim the credit for the tax deducted at source 
   under section 199 of the Act?
   ) in joint names be aggregated with the interest on deposits in individual names or not? 
4. In what manner should be certificate under section 203 of the Act be issued? 

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 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.