Government of India
Ministry of Finance
Central Board of Direct Taxes
Directorate of Income-tax (Systems)
New Delhi
Notification No. 08/2017
New Delhi, 13'th, 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 CBOT 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 th e 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 forthe period after death ofthe 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 and verification of the statements or
claim for refund in Form 26B in the manner 50 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 (Systems) hereby specifies that in case of
deposits under the Capital Gains Accounts Scheme, 1988 where the depositor
has deceased:
0).
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
(Systems).
of the Principal Director General of ~~-tax
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Copy for kind information to:-
(P .. T
ingaleng)
Dy. Commissioner of Income-tax (CPC-TDS),
0/0 the Pro Director General of Income-tax (Systems),
New Delhi
1.
PPSto the Chairman and all Members, CBDT, North Block, New Delhi.
2.
All Pro Chief Commissioners/Pro Director Generals of Income-tax/Chief Commissioners of
Income-tax/Pr. Commissioners of Income-tax/Commissioners of Income-
tax/Commissioners of Income-tax {TDS} with a request to circulate amongst all officers
in their regions/charges.
3.
JS (TPL}-I & II / Media Coordinator and Official spokesperson of CBDT.
4.
ADG(IT) / ADG(Audit) / ADG(Vig.) / ADG(Systems)1, 2, 3, 4, 5 / ADG(TPS)-l, 2 / CIT(CPC-
ITR) / CIT (CPC-TDS).
S.
ADG (PR, PP & OLIo
6.
TPL, ITA and IT{B} divisions of CBDT.
7.
The Institution of Chartered Accountants of India, I.P. Estate, New Delhi.
8.
The Web-Manager, 'incometaxindia.gov.in' for hosting on the website.
9.
Database cell for uploading on www.irsofficersonline.gov.inand in DG!T{Systems}
corner.
10.
11.
ITBA publisher for uploading in ITBA portal.
ITO (CPC-TDS}-I! for uploading on TRACES portal.
Dy. Commissioner of Income-t
(CPC-TDS),
0/0 the Pro Director General of Income-tax (Systems),
New Delhi
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