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

Double taxation of single income: joint account transactions taxed to both spouses, causing enforced recovery despite pending appeals. A joint bank account's transactions were assessed as income in the hands of both spouses, prompting identical demands; both appealed and the husband filed an affidavit claiming sole conduct of transactions. Despite appeals, the department froze the wife's accounts and pursued collection, asserting entitlement to recover the demand during appeal, causing significant financial hardship.