Insertion of Rules 37BA and 37I — Income-tax (Sixth Amendment) Rules, 2009, — Notification No. 28/2009, dated 16-3-2009.

2 Insertion of Rules 37BA and 37I — Income-tax (Sixth
Amendment) Rules, 2009, — Notification No. 28/2009, dated 16-3-2009.

Rule 37BA has been inserted wherein the CBDT has
clarified certain issues relating to credit available u/s.199 of the Act on
TDS and TCS. Important clarifications issued are as under :

• Credit shall be available based on the information
  provided by the tax deductor to the tax authorities in the E-TDS returns
  filed by them.
  

   

  • Credit
    shall be available to persons other than the deductee in case :
    
    

     

    • 
      clubbing provisions are attracted, or
      

       

    • 
      income is taxed in the hands of beneficiaries of a trust or an AOP,
      
      

       

    • 
      partner of a firm or karta of an HUF,
      

       

    • cases of joint ownership when the income is
      clubbed with
      the other person’s income, and the deductee provides details of name,
      address and PAN of such other person to the deductor by way of a
      declaration. In such cases the deductor needs to issue the certificate
      in the name of the other person mentioned in the declaration.

•  Credit for TDS would be given in the year in which the
  income is assessable to tax. In case the taxability of the income is
  deferred, then the credit for tax would be allowed over the said period of
  years in proportion to the income charged for each year.

Rule 37I has also been inserted with similar provisions
relating to tax collection at source.