TDS certificates in the name of the deceased depositor is accordance with law: CBDT notification on TDS on interest on deposits made under the Capital Gains Accounts Scheme, 1988
Government of India
Ministry-of Finance
Central Board of Direct Taxes
Directorate-of Income-tax (Systems)
New Delhi
Notification No. 08/2017
New Delhi, 13th September, 2017
Subject:- TDS on interest on deposits made under the Capital Gains Accounts Scheme, 1988-where the-depositor has deceased - reg.-
It has. been brought to the notice of CBDT that in cases of deceased
depositor who has made deposits under the Capital Gains Accounts Scheme,
1988; the banks are deducting TDS on the interest earned on such
deposits in the hand of the deceased depositor and issuing. TDS
certificates in the name of the deceased depositor, which is not in
accordance with the law. Ideally in Such type of situations, the TDS
certificate on the interest income for and upto the period of death of
the depositor is required to be issued on the PAN of the. deceased
depositor and for the period after death of the depositor is required to
be issued
on the PAN. of the legal heir.
2. Under sub rule (5) of Rule 31A of the Income-tax Rules, 1962, the
Director General of Income-tax (Systems) is authorized to specify the
procedures, formats and standards for the purposes of furnishing and
Verification of the statements or claim for refund: in Form 26B, and
shall be; responsible for the day-to-day administration in relation to
furnishing administration in relation to furnishing and verification of
the statements or Claim fer refund in Form 26B in the manner so
specified.
3. In exercise of the powers delegated by the-Central Board of Direct
Taxes (Board) under sub-rule (5) of Rule 31A of the Income Tax Rules,
1962, the Principal Director General . of Income-tax. (System's) hereby
specifies. that in case of deposits under the Capital Gains Accounts
Scheme, 1988 where the depositor has deceased:
(i) TDS on the interest income accrued for and upto the period of death
of the depositor‘is required to be deducted and reported against PAN of
the depositor, and
(ii) TDS on the interest income accrued for the period after death of
the depositor is required to be deducted and reported against PAN of the
legal heir,
unless a declaration is filed under sub-rule(2) of Rule 37BA of the income-tax Rules, 1962 to that effect.
4. This issues with approval of the Principal Director General of Income-tax (Systems)
Sd/-
(P.S. Thuingaleng)
Dy. Commissioner of Income-tax (CPC-TDS)
O/o the Pr. Director General of income-"tax (Systems),
New Delhi
