TDS Credit Allowable to Person in Whose Hands Income is Assessable as per Rule 37BA Income Tax Rules: ITAT

The ITAT clarified that TDS credit can be allowed to the taxpayer in whose hands the income is ultimately assessable, in accordance with Rule 37BA of the Income-tax Rules. The ruling makes clear that even if tax was deducted at source under another person’s PAN, the credit must be granted to the actual recipient of the income if assessable in their hands. This interpretation ensures accurate assignment of tax credit and prevents mismatches, supporting the correct adjustment of tax liabilities. It promotes fairness and adherence to the intended purpose of TDS mechanism. (Article summary)