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Need suggestion from TDS Expert

VIJPS (manager) (95 Points)

06 July 2011

Last year I gave Rs. 170,000 to my mother from my salary and she also received approx Rs. 20,000 from Bank interest and bank is detected approx Rs.2000 as TDS.

Can some one suggest me

1) Till now she never file ITR. Should she need to file ITR to get refund which was detected as TDS by bank

2) If she is going to file ITR then what should amount under column * income from other source ** as Rs. 20,000 or Rs 1,90,000

Note : she is not having any other income then this .

Thanks

Vikas

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21 Replies

MUKESH SHARMA (B.Com , MBA, CS*) (108 Points)
Replied 06 July 2011

It is necessary to File ITR for Claim TDS Refund.

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U S Sharma (glidor@gmail.com) (21063 Points)
Replied 06 July 2011

Originally posted by : vikas

Last year I gave170,000 to my mother from my salary and she also received approx20,000 from Bank interest and bank is detected approx 2000 as TDS.

Can some one suggest me

1) Till now she never file ITR. Should she need to file ITR to get refund which was detected as TDS by bank

- refund is not possible if the PAN number is not provided, as the bank will not be ready to revise the TDS return, neither the bank will issue form 16A with pan number of your mother.

- if the PAN number is furnished and you have got form 16A, then step forward for filing return and claim refund.

2) If she is going to file ITR then what should amount under column * income from other source ** as20,000 or1,90,000

- 170000 is gift received from son, hence non taxable capital receipt, so only 20000 is her income

Note : she is not having any other income then this .

Thanks

Vikas

Taxache (Strategy) (36 Points)
Replied 06 July 2011

If you have gifted Rs 1,70,000 to your mohter, then this will not be taxed in her hands. Since money received (in gift) from relatives (spouse,parents etc) doesnt attract tax liability in the receiver's hands. But you should have a gift deed done for this purpose.

She can show only Rs 20,000 as income from other sources.

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amit jain (Chartered Accountant) (532 Points)
Replied 06 July 2011

to claim refund filing of return is necessary.. n income from other sources would be 20000 bank interest received

VIJPS (manager) (95 Points)
Replied 06 July 2011

Dear Sharma ,

The Form 16 A privided by bank having PAN number of my mother. But when i am checking form 26AS for my mother PAN number , not finding any tax is submitted by bank corresponding my Mother PAN CARD ?

Should i file ITR ?

Thanks
vikas

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Pragnesh (AM - Taxation) (1259 Points)
Replied 06 July 2011

If You have original form 16A in your hand, then u can file ITR. Amount is not reflecting in your 26AS means either deductor has not filed TDS return or wrong quoted PAN number. In your case PAN number is correct. It means bank has not filed TDS return. But not worry, Bank have always practice of late TDS return filing, due large volume and verification.

SUDARSHAN (student) (22 Points)
Replied 07 July 2011

Plz someone tell me the TDS rates applicable for FY 2011-12. On which types of payment TDS should be deducted & on howmuch?

Vaibhav Garg (CA) (47 Points)
Replied 07 July 2011

Yes you are needed to file ITR of your mother to get your refund of your TDS Deducted. The total income would be Rs. 20000 and gift received from you Rs. 170000 will not be taxable in your mother's hands.

Vaibhav Garg (CA) (47 Points)
Replied 07 July 2011

Vikas if form 26AS is not getting matched with the form 16A given by bank then that doesn't mean that the bank have not filed its TDS Return. Generally Bank have heavy entries to be filed in the TDS return and the Income Tax Department also have to upload those entries to the website. So it is delayed by the IT Department itself to upload the bulk entries. So do not worry just file your return according to the Form 16A and ignore 26AS. Form 26AS could only be used to just verify the Form 16A but if Form 16A is with you then nothing better can help you.

Also if any additional entry is being shown by Form 26AS than Form 16A then the form 16A could be challenged otherwise not.

Regards,

Vaibhav Garg

CA Greeshma (Chartered Accountant) (43 Points)
Replied 07 July 2011

vikas,u need to file ITR of ur mother as income from other sources Rs.20000 and claim refund.i think your salary income is subject to TDS so it wont be taxable in your mother's hands.if amount of TDS is not traceable in her 26AS it may be because of error from bank's side at the time of filing their TDS return.you may approach bank with a letter for rectifying the error if it persists after filing the return

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Rahhoul Pundlik (extive) (24 Points)
Replied 07 July 2011

I made FD with one ltd co in my joint name 1st name is of my mother she has not any other income,co deducted TDS shall i claim refund of that tds in my ITR

Pragnesh (AM - Taxation) (1259 Points)
Replied 07 July 2011

Only your monther can the ITR to get TDS refund. because credit of income goes to the the first holder of the Fixed deposit. same thing you can trace from the 16A and 26AS.