Husband Entitled To TDS Credit On Interest Earned From Amount Gifted To His Wife: ITAT
Live LawThe Income Tax Appellate Tribunal's, Pune Bench ruled that the husband is entitled to TDS credit on interest earned on the amount gifted to his wife.The two-member bench of R.S. The Income Tax Appellate Tribunal's, Pune Bench ruled that the husband is entitled to TDS credit on interest earned on the amount gifted to his wife. Since the deposit was made out of the gift made by him, the assessee included proportionate interest income in his total income and also claimed credit for proportionate tax deducted at source. The ITAT held that merely because the assessee’s wife did not furnish a declaration to the bank in terms of the proviso to Rule 37BA, the amount of tax deducted at source, which is otherwise with the Department, cannot be allowed to remain with it eternally without allowing any corresponding credit to the person who has been subjected to tax in respect of the income.
History of this topic
Discover Related
