Refund of tds
This query is : Resolved
10 December 2011
Dear Expert
XYZ Pvt Ltd Company has deducted tds on provision amount of director remuneration on 28/02/2011 and paid the tds to goverment under section 192B. At the year end company profit was affected due to director remuneration. so in order to show profit for the year director decided not to provide the provision of director remueration and tds amount paid is adjusted against loan amount of director. now what is the possible solution to company to get back the TDS amount i.e refund of TDS???
Please reply.....
XYZ Pvt Ltd Company has deducted tds on provision amount of director remuneration on 28/02/2011 and paid the tds to goverment under section 192B. At the year end company profit was affected due to director remuneration. so in order to show profit for the year director decided not to provide the provision of director remueration and tds amount paid is adjusted against loan amount of director. now what is the possible solution to company to get back the TDS amount i.e refund of TDS???
Please reply.....
10 December 2011
Excess payment discovered during financial year
In case such excess payment is discovered by the deductor during the financial year concerned, the present system permits credit of the excess payment in the quarterly statement of TDS of the next quarter during the financial year.
Safeguards to avoid double claims
To avoid double claim of TDS by the deductor as well as by the deductee, the following safeguards must be exercised by the Assessing Officer concerned:
The applicant deductor shall establish before the Assessing Officer that:
(i) it is a case of genuine error and that the error had occurred inadvertently;
(ii) that the TDS certificate for the refund amount requested has not been issued to the deductee(s); and
(iii) that the credit for the excess amount has not been claimed by the deductee(s) in the return of income or the deductee(s) undertakes not to claim such credit.
Prior approval of the Additional Commissioner is required for refund in excess of Rs. 1 Lakh
Prior approval of the Commissioner is required for refund inexcess of Rs. 10 Lakhs
After meeting any existing tax liability of the deductor, the balance amount may be refunded to the deductor.
In case such excess payment is discovered by the deductor during the financial year concerned, the present system permits credit of the excess payment in the quarterly statement of TDS of the next quarter during the financial year.
Safeguards to avoid double claims
To avoid double claim of TDS by the deductor as well as by the deductee, the following safeguards must be exercised by the Assessing Officer concerned:
The applicant deductor shall establish before the Assessing Officer that:
(i) it is a case of genuine error and that the error had occurred inadvertently;
(ii) that the TDS certificate for the refund amount requested has not been issued to the deductee(s); and
(iii) that the credit for the excess amount has not been claimed by the deductee(s) in the return of income or the deductee(s) undertakes not to claim such credit.
Prior approval of the Additional Commissioner is required for refund in excess of Rs. 1 Lakh
Prior approval of the Commissioner is required for refund inexcess of Rs. 10 Lakhs
After meeting any existing tax liability of the deductor, the balance amount may be refunded to the deductor.
11 December 2011
now section 200A takes care of such situations and refund will be granted to deductor after processing of TDS return
CA MANOJ GUPTA
JODHPUR
09828510543
CA MANOJ GUPTA
JODHPUR
09828510543
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