Me and my wife are both senior citizens. Some of my amount was invested in a bank FD in his name. Interest earned on FD is included in my total income but TDS certificate is issued by the bank in the name of my wife. My wife has no other income. Can I show TDS certificate details of my wife in my ITR and claim TDS amount?
Since the money used for making fixed deposits in your wife’s name is yours, it needs to be clubbed with your income as per the provisions of the Income Tax Act.
As per the provisions of Rule 37BA(2)(i) of the Income Tax Rules, 1962, your wife can submit a declaration to the bank stating that the interest income is taxable in your hands and not with your PAN details and the bank will then Will submit your details to the Income Tax Department so that you can claim and get credit for the tax thus deducted. ITR form has functionality to facilitate claim of TDS where income of another person is required to be included in your income and where tax is deducted in the name of that person. Please mention his PAN while including his income in your ITR.
If he has no tax liability, he should submit Form No. 15H to the bank so that no tax can be deducted by the bank. I would advise you to make FD as your name instead of its name as the income is being included in your hands anyway to avoid all these hassles.
Balwant Jain is a Tax and Investment Specialist and can be contacted here jainbalwant@gmail.com and @jainbalwant on Twitter.
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