Claim of Tds deducted

[B Tayub]

A partnership firm is doing civil contracts. It undertakes works in the name of the partners also and hence the TDS certificate is in the name of the partner. The income is offered in firm's hand. How to claim the TDS? the TDS certificates are in the name of the partner and hence they do not find place in the 'Form 26AS'. Whether the same can be claimed in the partner's assessment even though there is no income from business other than the interest and salary from firm?

[Ravi Chopra]

Where the work in undertaken in the name of partners, tds certificates in the name of partners, what is the difficulty if the income is shown by the partner as his income and claim the tds. Otherwise, it is sure case of assessment u/s 143(3) or re-assessment u/s 147 as per my belief.

[B Tayub]

As per the deed of partnership the partners have to necessarily offer the income in firm's hand only and they can not undertake individual contracts.

[Guest]

It cannot be claimed in the hands of the partners since the income is legitemately liable tax in the firm's case only and that the credit for tds is available only if the income is offered and that the benefit of section 199 of the I T Act may be solicited to claim the TDS amiunt.

AI Summary

TDS credit allocation: mismatch between deductee name and taxable entity can prevent partner from claiming credit. The issue concerns entitlement to TDS credit when TDS certificates are issued in partners' names but the receipts are offered to tax by the partnership firm. One position suggests partners could claim credit if they declare the income; another opposes this, noting that where the partnership deed and accounts attribute income to the firm, the credit belongs to the firm and may be claimed or corrected using the statutory TDS credit mechanism (invoking the provision commonly referred to under section 199) or via assessment/reassessment.