the
tax deduction in the name of the other person in the
information relating to deduction of tax referred to
in sub‐rule (1).
The above referred declaration filed by the deductee
would have to contain the name, address,
permanent account number of the person to whom
credit is to be given, payment or credit in relation to
which credit is to be given and reasons for giving
credit to such person.
Also, the deductor would have to issue the TDS
certificate in the name of the person in whose name
credit is shown in the information relating to
deduction of tax referred to in sub‐rule (1) and
should keep the declaration in his safe custody.
Other important points
Credit for TDS paid to the Central Government shall
be given for the assessment year for which such
income is assessable.
Where TDS has been deducted and paid to the
Central Government and the income is assessable
over a number of years, credit for tax deducted at
source shall be allowed across those years in the
same proportion in which the income is assessable to
tax.
Credit for TDS shall be granted on the basis of –
- The information relating to deduction of
tax furnished by the deductor to the
income‐tax authority or the person
authorized by such authority: and
- The information in the return of income
in respect of the claim for the credit,
subject to verification in accordance with the risk
management strategy formulated by the Central
Board of Direct Taxes from time to time.
Summary
The issue of granting credit for TDS has always been a
complex and problematic one. Now, with clear
guidelines being given, one hopes that credit for TDS
would be easily obtained. The new Rules would be
particularly useful in those cases where there is more
than 1 owner of the asset which yields the income. In
such cases, the granting of credit for TDS amongst
the various owners will become simpler now. |