ITR
TDS on a joint FD shown in one PAN
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Facts
Under the rules for TDS credit, if income is assessable in another person's hands, the deductee can declare this to the deductor so the TDS is credited to that person. Otherwise, TDS stays with the first holder.
Provisions and law
- Rule 37BA, Income-tax Rules 1962 (now Rule 203)Credit for TDS in the year income is assessed, and in the name of the person whose income it is
- Sec 194A (now Sec 393)TDS on interest
Analysis
If your wife funded the FD fully and the interest of ₹60,000 is her income, she should report it. Ask the bank to split TDS by a declaration before they file the quarter's TDS statement. If that has not happened, the TDS stays in your 26AS; report the income where the TDS is, or be ready to explain. Getting the bank declaration right is easier than fixing it later.
Conclusion
- Decide whose income the interest is, based on who funded the FD
- Give the bank a declaration to credit TDS to that person
- Report the interest in the return of the person whose income it is
- Keep FD funding proof
A Savvy can do this for you
Pre-filing reconciliation of AIS, TIS, 26AS and Form 16
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