26 July 2008
An educational institution, which is expempt under income tax,made fixed deposit with a private bank. The bank had deducted TDS for 2007-08 and issued a TDS certificate. When approached they said since it has alredy deposited with the income tax authorities and informed that for the year 2008-09, we should submit exemption certificate so that the bank does not deduct tax at source for 2008-09.
Query
(i) Is there any possibility we can ask bank to refund the deducted amount. (ii) If not, how and what manner we should take up the matter with Income tax authorities so that the deducted amount is recovered. (iii) The education institution recoveres TDS from different payments(contractors, professional services etc.). Can we adjust with this amount (for say August 2008) against the tax deducted by bank during 2007-08 and pay less for August 2008.i.e to say TDS recovered during August 2008 by the educational institution Rs.1000 Less : TDS deducted by bank Rs.100 Paid to August 2008 Rs.900.
27 July 2008
sINCE THE EDUCATIONAL INSTITUTION IS EXEMPT FROM INCOME HOW CAN IT FILE RETURN. SUGGEST ALTERNATIVE FOR GETTING THE REFUND WITH IT PROVISONS/ SECTION ETC.
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