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Tds u/s 194a inrespect of interest income on joint deposits

Yash. (Final CA Student) (76 Points)

11 August 2011

Assessee Jointly holds Bank Deposits with her Daughter. Funds Seperately owned identified and belonging to assessee and her daughter. Gross Interest divided between assessee and daughter. Assessee taking full credit of TDS after disclosing half of GROSS INTEREST . Daughter paying full TAX on Half of GROSS INTEREST and claiming NO credit for TDS. Please give Relevent case laws, CBDT circulars/ notification.

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3 Replies

Amit (Chartered Accountant B.Com(H)) (453 Points)
Replied 11 August 2011

Bank would have filed TDS retrun showing tds on account of two seperate deductees having two separate PAN. Thus one assessee can not take credit of tds which is credited to seperate assessee. This may invite notice from department to the assessee taking extra credit. That is why now department ask assessee to verify 26AS before filing his return.