Double payment of TDS under One Section.
This query is : Resolved
17 June 2010
If I have paid twice the Tax deduted at source under any Section say 194C and after geting set off of the same against next month's payable, up to 31st March now there is still balance receivable (i.e. the extra amount ,I hae paid), How can I claim refund for the same? IS there any provision regarding this or I have to Write it off!!
17 June 2010
You can make application for excess payment of TDS refund with ITO of respective TDS circle
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17 June 2010
Tds refundable a/c is ot be shown in balancesheet and write a letter to AO for claiming such refund.
Please go through the below circular
Q. EXCESS TDS WAS DEDUCTED & DEPOSITED. IS THERE ANY REMEDY?
A. CBDT issued circular No 285 [F No 275/77/79-ITB] dt 21/10/1980 which is given below and self explainatory
"Procedure for regulating refund of amounts paid in excess of tax deducted and/or deductible
• 1. The Board have been considering the manner of refunding the amount paid in excess of the tax deducted and/or deductible (whichever is more) under sections 192 to 194D of the Income-tax Act. The Board are advised that such excess payment can be refunded, independently of the Income-tax Act, to the person responsible for making such payment subject to necessary administrative safeguards.
• 2. In suppression of the earlier instruction on the subject, the following procedure is laid down to regulate the refund of such excess payments.
• 3. The excess payment would be the difference between the actual payment made by the deductor and the tax deducted at source or that deductible, whichever is more. This amount should be adjusted against the existing tax liability under any of the Direct Tax Acts. After meeting such liability the balance amount, if any, should be refunded to the assessee.
• 4. Where the tax is deducted at source and paid by the branch office of the assessee and the quarterly statement/annual return (in case of salaries) of tax deduction at source is filed by the branch, such branch office would be treated as a separate unit independent of the head office. After meeting any existing tax liability of such a branch, which would normally be in relation to the deduction of tax at source, the balance amount may be refunded to the said branch office. The Income-tax Officer, who will refund the amount, would be the one who receives the quarterly statement/annual return (in case of salaries) of tax deduction at source from that branch office and keeps record of the payments of tax deduction at source made by that branch.
• 5. The adjustment of refund against the existing tax liability should be made in accordance with the present procedure on the subject. A separate refund voucher to the extent of such liability under each of the direct taxes should be prepared by the Income-tax Officer in favour of the income-tax department and sent to the bank along with the challan of the appropriate type. The amount adjusted and the balance, if any, refunded would be debit able under the sub-head Other refunds below the minor head Income-tax on companies major head 020Corporation Tax or below the minor head Income-tax other than Union Emoluments major head 021Taxes on incomes other than corporation tax according as the payment has originally credited to the major head 020Corporation tax or the major head 021Taxes on incomes other than corporation tax.
• 6. Since the adjustment/refund of the amount paid in excess would arise in relation to the deduction of tax at source, the recording of the particulars of adjustment/refund should be done in the quarterly statement of TDS/Annual return (in case of salaries) under the signatures of the Income-tax Officer at the end of the statement, i.e., below the signatures of the person furnishing the statement."
Please go through the below circular
Q. EXCESS TDS WAS DEDUCTED & DEPOSITED. IS THERE ANY REMEDY?
A. CBDT issued circular No 285 [F No 275/77/79-ITB] dt 21/10/1980 which is given below and self explainatory
"Procedure for regulating refund of amounts paid in excess of tax deducted and/or deductible
• 1. The Board have been considering the manner of refunding the amount paid in excess of the tax deducted and/or deductible (whichever is more) under sections 192 to 194D of the Income-tax Act. The Board are advised that such excess payment can be refunded, independently of the Income-tax Act, to the person responsible for making such payment subject to necessary administrative safeguards.
• 2. In suppression of the earlier instruction on the subject, the following procedure is laid down to regulate the refund of such excess payments.
• 3. The excess payment would be the difference between the actual payment made by the deductor and the tax deducted at source or that deductible, whichever is more. This amount should be adjusted against the existing tax liability under any of the Direct Tax Acts. After meeting such liability the balance amount, if any, should be refunded to the assessee.
• 4. Where the tax is deducted at source and paid by the branch office of the assessee and the quarterly statement/annual return (in case of salaries) of tax deduction at source is filed by the branch, such branch office would be treated as a separate unit independent of the head office. After meeting any existing tax liability of such a branch, which would normally be in relation to the deduction of tax at source, the balance amount may be refunded to the said branch office. The Income-tax Officer, who will refund the amount, would be the one who receives the quarterly statement/annual return (in case of salaries) of tax deduction at source from that branch office and keeps record of the payments of tax deduction at source made by that branch.
• 5. The adjustment of refund against the existing tax liability should be made in accordance with the present procedure on the subject. A separate refund voucher to the extent of such liability under each of the direct taxes should be prepared by the Income-tax Officer in favour of the income-tax department and sent to the bank along with the challan of the appropriate type. The amount adjusted and the balance, if any, refunded would be debit able under the sub-head Other refunds below the minor head Income-tax on companies major head 020Corporation Tax or below the minor head Income-tax other than Union Emoluments major head 021Taxes on incomes other than corporation tax according as the payment has originally credited to the major head 020Corporation tax or the major head 021Taxes on incomes other than corporation tax.
• 6. Since the adjustment/refund of the amount paid in excess would arise in relation to the deduction of tax at source, the recording of the particulars of adjustment/refund should be done in the quarterly statement of TDS/Annual return (in case of salaries) under the signatures of the Income-tax Officer at the end of the statement, i.e., below the signatures of the person furnishing the statement."
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