Tax deduction at source on joint-account interest may be aggregated with one payee's interest, affecting withholding and certificate issuance. Where deposits are in joint names, absent definite information about beneficial ownership the payer may treat both joint holders as payees and aggregate the interest on the joint account with the interest payable to one joint holder (preferably the one with higher interest income) to determine whether the aggregate interest exceeds the non-withholding limit and whether tax should be deducted; the section 203 certificate is to be issued in the name with whom aggregation is made and section 199 credit allowed to that person.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Tax deduction at source on joint-account interest may be aggregated with one payee's interest, affecting withholding and certificate issuance.
Where deposits are in joint names, absent definite information about beneficial ownership the payer may treat both joint holders as payees and aggregate the interest on the joint account with the interest payable to one joint holder (preferably the one with higher interest income) to determine whether the aggregate interest exceeds the non-withholding limit and whether tax should be deducted; the section 203 certificate is to be issued in the name with whom aggregation is made and section 199 credit allowed to that person.
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