04 July 2012
A company filled return for A.Y. 2010-11 on 29.09.2010 and it forgot to take claim for some amount of TDS deducted...so the time limit for revising the return has expired...but the case for the same year is under scrutiny...what should be the course of action now to claim the tds refund...please suggest..
28 July 2024
If a company has missed claiming TDS for a particular assessment year and the time limit for revising the return has expired, here are the steps and options available:
### **1. Claiming TDS During Scrutiny:**
Since the case is under scrutiny for the Assessment Year (AY) 2010-11, you can certainly address the issue of unclaimed TDS during the scrutiny proceedings. Here’s how you can approach it:
- **Review the TDS Details:** Gather all documentation related to the TDS that was deducted but not claimed, such as TDS certificates (Form 16/16A) and other relevant records. - **Include in Scrutiny Reply:** In your response to the scrutiny notice, clearly mention the unclaimed TDS. Provide detailed documentation and a revised computation of income reflecting the TDS. The Assessing Officer (AO) can consider this while finalizing the assessment.
### **2. Filing a Revised Return (If Applicable):**
Although the time limit for revising the return for AY 2010-11 has expired, in specific circumstances, you may still be able to file a revised return under scrutiny, particularly if the AO allows it.
- **Request Revision:** In your response to the scrutiny notice, request permission to revise the return to include the unclaimed TDS. The AO has the discretion to allow this if the circumstances justify it.
### **3. Claiming TDS in the Current Year:**
Generally, you cannot claim TDS from a previous year in the current year’s return. TDS should be claimed in the year in which the income was earned and the TDS was deducted. However, if the scrutiny assessment of the earlier year is still open and the TDS can be claimed, then you should proceed as follows:
- **Adjust in Scrutiny:** Address it in the scrutiny process for the AY 2010-11. - **Tax Credit:** Ensure that the TDS is properly accounted for in the current year if it has been wrongly included. However, this is usually not standard practice unless a specific provision allows it in the context of scrutiny adjustments.
### **4. Other Steps:**
- **Rectification Request:** If the return is finalized, but TDS was missed, you may need to file a **rectification request** under Section 154 of the Income Tax Act. This is applicable for rectifying errors or omissions in the order of assessment.
- **Tax Credit Statement:** Ensure that the TDS is correctly reflected in your **Form 26AS**. This form shows the TDS details as per the records of the Income Tax Department. If the TDS is shown in Form 26AS but not claimed, this will help in arguing your case.
### **Steps to Claim Refund:**
1. **Collect Documentation:** Gather all TDS certificates and related documents. 2. **Prepare Scrutiny Response:** Include the unclaimed TDS details in your response to the scrutiny notice. 3. **Revise Return (if permitted):** Request permission to revise the return if possible. 4. **File Rectification:** File a rectification request if needed. 5. **Monitor Refund:** Follow up on the refund status and ensure all records are updated.
### **Summary:**
1. **Address TDS in Scrutiny:** Clearly state the issue in your response to the scrutiny notice. 2. **Seek Revision Permission:** Request the AO for permission to revise the return if feasible. 3. **File Rectification:** Use Section 154 to rectify any errors in the assessment order. 4. **Ensure Accurate Records:** Verify that TDS details are correctly reflected in Form 26AS.
It is advisable to consult with a tax professional or legal advisor to ensure compliance with all applicable rules and to get assistance tailored to your specific situation.
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