SINGLE INCOME TAXED TWICE

[SIDDHARTHA DASGUPTA]

I WOULD LIKE TO KNOW SOME WAY OUTS AND INFORMATIONS WHERE A SINGLE INCOME HAS BEEN TAXED TWICE IN THE HANDS OF BOTH HUSBAND AND WIFE , SHARING ONE JOINT ACCOUNT.

ACTUAL FACTS :

INCOME TAX DEPARTMENT ISSUED DEMANDS TO BOTH HUSBAND AND HIS WIFE AT THE END OF A FINANCIAL YEAR.

BOTH OF THEM FILED APPEAL AGAINST THE DEMANDS WITHIN THE STIPULATED DATE.

IT WAS SEEN VIDE THE DEMAND ORDERS THAT THE TRANSACTIONS OF ONE PARTICULAR BANK ACCOUNT IN WHICH THE HUSBAND AND WIFE IS A JOINT HOLDER HAS BEEN TAXED TWICE.

THE SAME AMOUNT HAS BEEN TAXED IN THE HANDS OF THE HUSBAND AND EXACTLY THE SAME FIGURE HAS BEEN TAXED IN THE HANDS OF THE WIFE ALSO.

THE APPEAL WAS FILED ACCORDINGLY WITH ALL DOCUMENTAL EVIDENCES AND THE COPY OF THE ORDERS

THE HUSBAND ALSO SUBMITTED AN AFFIDAVIT TO THE DEPARTMENT STATING THAT THE ENTIRE TRANSACTIONS OF THAT JOINT ACCOUNT WAS DONE BY HIM AND IT MAY BE CONSIDERED FOR TAXATION IN HIS FILE ( WHICH HAS ALREADY BEEN DONE).

INSPITE OF THAT THE DEPARTMENT HAS FROZEN THE BANK ACCOUNTS OF THE WIFE AND PRESSURISING HER TO PAY THE DEMAND MADE BY THEM.

WHEN PRAYED TO THE DEPARTMENT FOR A STAY ORDER UNTIL THE APPEAL IS HEARD- THE REPLY COMES ---- AS PER CBDT INSTRUCTION NUMBER 1914 -AN ASSESSEE IS REQUIRED TO PAY THE DEMAND EVEN IF HE/SHE HAS FILED AND APPEAL.

IN THIS CASE THE MONTHLY INSTALMENT WHICH THE DEPARTMENT IS CLAIMING IDS 5 TIMES MORE THAN THE MONTHLY SALARY OF THE WIFE, WHO IS A SERVICE HOLDER AND HER MONTHLY SALARY IS RS. 35,000/-. THE BANK ACCOUNT IS FROZEN FROM LAST ONE YEAR AND SHE IS UNABLE TO SURVIVE AS SHE CANNOT WITHDRAW A SINGLE RUPEE FOR HER BASIC SURVIVAL. . THE AMOUNT WHICH THE DEPARTMENT IS CLAIMING IS RS. 1,90,000/- PER MONTH, WHICH IS 5 TIMES MORE THAN HER SALARY.

ANY GUIDANCE FROM ANYONE WOULD BE HIGHLY APPRECIATED.

THANKS

AI Summary

Couple Faces Double Taxation; Wife's Account Frozen Despite Appeal, Citing CBDT Instruction 1914; Seeks Resolution A couple is facing double taxation on a joint bank account, with both being taxed on the same income. Despite filing an appeal with supporting documents, the tax department has frozen the wife's bank account and is demanding payment, citing CBDT Instruction Number 1914, which requires payment even during an appeal. The demanded monthly installment is Rs. 1,90,000, far exceeding the wife's monthly salary of Rs. 35,000, leaving her unable to access funds for basic needs. The husband has submitted an affidavit stating he conducted all transactions, but the issue persists, and they seek guidance.