Income offered by Husband and Wife separately in the ITR & TDS credit claimed by Husband Only: ITAT Mumbai allows the TDS Credit
A very interesting common issue was there before ITAT Mumbai regarding TDS credit from sale of immovable property jointly held with wife wherein income is offered in the ITR of both but the TDS is done in the name of single individual person.
The case detail is as under:
ITAT MUMBAI: RAHUL DINESH BAJPAI VERSUS DY. DIRECTOR OF INCOME TAX CPC, BENGALURU-560 100 KARNATAKA, No.- ITA No. 2456/Mum/2024
Dated.- November 27, 2024
ITAT Mumbai in its concluding para has held as under:
1. Entire TDS on the sale consideration was remitted to the Government account in the name of the assessee. This fact is clearly evident from Form No. 26AS and the corresponding TDS certificate. Accordingly, the assessee claimed credit of entire TDS. Whereas, in the return of income of assessee’s wife, no TDS was claimed. The aforesaid factual position remains uncontroverted before us. Merely because the property was jointly owned by the assessee and his wife and the capital gain arising on sale of property was equally shared by the joint owners, that cannot be the sole reason for disallowing assessee’s claim in respect of TDS credit. More so, when it is the assertion of the assessee that his wife has not claimed credit for TDS.
2. In view of the aforesaid, we direct the A.O. to factually verify, whether assessee’s wife has claimed any part of the TDS and in case, assessee’s claim that his wife has not claimed any part of the TDS is found to be correct, entire TDS credit should be allowed to the assessee.
With above, ITAT Mumbai allowed TDS credit to the Husband despite the fact that the husband and wife have offered the income for taxation in the 50:50 Ratio.
The copy of the order is as under:
