Gift of Fixed Deposits

[Praveen Minocha]

Mother has gifted the FDs to his son during the year through Gift deed on plain paper. Accordingly Son included the FD Income in his Total Income and paid advance tax accordingly.These FDs will get matured in next year. These FDs were Senior Citizen FD held jointly In name of Mother and Son. Mother Name First and Sons name second. Accordingly Bank deducted Tds against mothers PAN. Now how can Son claim this Tds which was deducted and deposited in mothers PAN while the income is considered by Son in his Return. Is there any better way of entering into the above transaction??

[DR.MARIAPPAN GOVINDARAJAN]

If return has already been filed revised return may be filed incorporating these changes and if any tax is excessively paid the same may be got refunded.

AI Summary

TDS mismatch: Son can claim refund by filing revised return after gift-transfer of FD income. Mother gifted jointly held senior-citizen fixed deposits to her son, who included the FD interest in his income while the bank deducted TDS against the mother's PAN because her name appeared first. The recommended procedure is to file a revised return incorporating the correct income attribution so that any excess tax deducted under the mother's PAN can be claimed as a refund.