Clubbing of income is done when an assessee is taxed in respect of income of others. The intention behind this is to make sure that no income escapes from taxation. The income which is so included is called Deemed Income. It is as per the provisions contained in Sections 60 to 64 of the Income Tax Act.    We are very much aware of clubbing of income but there are few issues which are faced by assessee regarding the same. When assessee clubs any income on which tax has been deducted at source (TDS) in the name of person whose income is being clubbed then the issue arises in context to claiming of TDS. When we club such income, issue of claiming TDS arises as TDS is deducted in the name of deductee but income related to that is included in the hands of other person. Example: Mr. A has transferred Rs. 50lacs to his wife account and wife has invested in FDR and bank has deducted TDS on the same. As per clubbing provisions of sec. 60 to 64 of Income Tax Act, interest income of wife will be clubbed in the hands of husband due to transfer of amount without adequate consideration or in connection with an agreement to live apart. Bank has issued TDS certificate in the name of wife. Here, income from FDR shall be included in income of Mr. A. however, due to mismatch of 26AS, Mr. A will not be able to claim tax deducted by bank on such income. In such situation, Rule 37BA, Clause 2(i) provides that “If the income on which tax has been deducted at source is assessable in the hands of a person other than the deductee, credit for tax deducted at source shall be given to the other person in cases where the income of the deductee is included in the total income of another person under the provisions of section 60, section 61, section 64, section 93 or section 94. Provided that the deductee files a declaration with the deductor and the deductor reports the tax deduction in the name of the other person in the information relating to deduction of tax.” The said declaration shall be filed by the deductee stating the name, address, permanent account number of the person to whom credit is to be given, payment or credit in relation to which credit is to be given and reasons for giving credit to such person. Thus, if you encounter any such situation then a declaration by deductee shall be given to deductor before deduction of TDS. If this procedure is followed then during filing of return this issue can be avoided. However, in case if TDS has already been deducted by the bank then deductee shall approach bank to revise the return filed. As we know that this might not be possible practically thus, in such case we are left with the option to club the income and on the other hand deductee shall file its NIL return and claim the TDS refund. In this process, you may receive notice from the Department. In reply to notice, you need to prove that income was clubbed with the income of husband. The Act provides for clubbing of income but no provision made regarding claim of TDS on the same. Due to this default, assessee faces problem in clubbing income and filing return. Therefore, department shall make changes in the process of filing return regarding clubbing and claiming TDS on same. so be cautious while clubbing income if TDS deducted. _______________________________________________________________________________________