TDS refund of past year not provided in Return of FY 2022-23 under Rule 37BA

This query is : Resolved

Neha (Querist)
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20 January 2024 Respected Sir/ Madam

In 26AS of FY 2022-23 bit of TDS of 2021-22 is appearing and is claimed in return of FY 2022-23.

Income of FY 2021-22 whose TDS is now showing in 26AS of FY 2022-23 has been correctly accounted for in FY 21-22 and Income given for taxation in the return of FY 21-22 although TDS on this income had not been claimed in FY 2021-22 as it was not appearing in 26AS of past year.

CPC has not given credit of past years TDS in return of FY 2022-23.
Return processed without giving credit of TDS of FY 2021-22

Now Return of FY 2022-23 is processed and Intimation u/s 139(1) has been received with Computation of Restriction of TDS based on Rule 37BA which has reduced total TDS claimed in return by amount of TDS that pertains to past year (FY 2021-22)

What to do now to get credit of total TDS ( TDS of 2021-22 + TDS of 2022-23) in return of FY 2022-23.

Please Guide

Thanks & Regards

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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11 July 2024 It appears that you are facing an issue where TDS deducted in FY 2021-22 is now showing in your Form 26AS for FY 2022-23, but you were unable to claim this TDS in your FY 2021-22 return. Consequently, the CPC (Centralized Processing Center) has not given credit for this TDS in your FY 2022-23 return, and the Intimation u/s 143(1) has restricted the total TDS claimed in FY 2022-23 due to Rule 37BA.

Here are steps you can take to resolve this issue and ensure you get credit for the total TDS (FY 2021-22 + FY 2022-23) in your FY 2022-23 return:

### 1. Rectify FY 2021-22 Return (if TDS was not claimed):

- **Review FY 2021-22 Return:** Check if you can revise your FY 2021-22 return to claim the TDS that was deducted but not claimed earlier.
- **Revised Return:** File a revised return for FY 2021-22 if it's within the permissible time limit (usually within one year from the end of the assessment year).

### 2. Claim TDS in FY 2022-23 Return:

- **File Rectification Request:** Since the CPC has already processed your FY 2022-23 return and issued an intimation under section 143(1), you need to file a rectification request online on the Income Tax e-Filing portal.
- **Rectification Reason:** Select the reason as "Tax Credit Mismatch - TDS not allowed as per Rule 37BA" or similar, and provide details regarding the TDS amount from FY 2021-22 that should be allowed in FY 2022-23.

### 3. Supporting Documentation:

- **Provide Evidence:** Ensure you have documentary evidence of the TDS deducted in FY 2021-22 (like TDS certificates, bank statements showing TDS deduction, etc.).
- **Form 26AS:** Attach relevant portions of Form 26AS showing TDS details for FY 2021-22 and FY 2022-23.

### 4. Follow-up:

- **Monitor Progress:** After filing the rectification request, monitor the status regularly on the Income Tax e-Filing portal.
- **Communication:** If necessary, communicate with the CPC or Income Tax helpline for updates or further assistance.

### 5. Consultation:

- **Seek Professional Advice:** If you are unsure about the process or need assistance, consider consulting with a tax advisor or a chartered accountant who can guide you through the rectification process and ensure compliance with tax laws.

### Important Points:

- Ensure all steps are taken promptly, especially if deadlines are approaching.
- Keep all communications and documentation organized for future reference.
- Be patient as the rectification process may take some time depending on the workload at the CPC.

By following these steps and seeking appropriate guidance, you should be able to rectify the issue of TDS credit for FY 2021-22 in your FY 2022-23 return effectively.