16 June 2010
My query? Can we claim TDS and if yes then how and of which years?
Background- Mr.hardworker of marketing dept. taxes was deducted at source and the accounting people of the firm were old schools. They were deducting the tax lets say 16,000 for the past 5 years and just then a new CA enters and tells them, his TDS can't be 16,000 but instead 8,000. the old school followed up and changes were made.
In your quary you have not cleared, this excess TDS pertains to previous years or current year. If excess TDS is shown in current year then while filing return, show refund in ITR & wait for refund.
If it pertains to previous year, then revise previous year return.
16 June 2010
Tax deduction is governed by chapter XVII of the Income tax Act,1961. As far as credit for tax deducted is concerned ,the corresponding section is 199 of the said act. That section reads, any deduction made in accordance with the provisions of this chapter...... Here tax is not deducted in accordance with the concerned provisions ie., in the palace of Rs. 8,000/-, Rs. 16,000/- had been deducted. Thus issue becomes debatable. In view of that, divergent decisions of tribunal/court has been reported. According to that, one school of thought says, credit for TDS is to be given in the year in which the corresponding income is offered for taxation. The other says, credit for TDS is to be given in the year in which TDS is claimed irrespective of whether the entire income covered in the TDS certificate is offered for taxation in that particular year.
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