We at B.D. Jokhakar & Co. explain Rule 37BA of the Income Tax Act, 1961, which governs how TDS credit is claimed when the income on which tax is deducted is assessable in the hands of a person other than the deductee — such as dividend income clubbed in a parent’s return for a minor child. We cover the two conditions required to transfer TDS credit, the procedure for filing a declaration with the deductor, and how the deductor must report and issue the TDS certificate in the name of the correct person.
