TDS Claim

This query is : Open

CA. Rishabh Mittal (Querist)
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01 January 2011 Mr A has made the payment of commission of Rs. 100000 each to Mr B & Mr C. Mr A has deducted the tax of Rs. 10000 each on both the payments AND paid Rs. 100000 to Mr B and Rs. 80000 to Mr C. (i.e. Total Tax was deducted from the payments made to Mr C) Now what is the remedy to Mr. C to claim excess amount of TDS of Rs. 10000, unnecessarily deducted from his receipts. He can't show the receipts of Rs. 200000 in his income tax return to claim the TDS of Rs. 20000.

Please send your valuable suggestions supported by case laws / judgements, if any .

Thanks & regards
Rishabh

CA Chandresh Agrawal

CA Chandresh Agrawal (Expert)
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01 January 2011 As per my view-
Assessee is eligible for credit of TDS
If TDS certificate issued to him shows TDS of Rs.20,000 then he is eligible to take credit of 20k in his return. and as tax is deducted more than require he is eligible to get refund of excess of Rs. 10,000 subject to his tax liability.
But if TDS certificate shows commision amount of Rs. 2,00,000 then there is not wrong deduction as per certificate then in that case it is advisable to get correct certificate.

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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01 January 2011 Mr C has to show Rs. 1 lacs as income and 0.20 lacs TDS deducted.

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CA. Rishabh Mittal

CA. Rishabh Mittal (Querist)
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01 January 2011 Thanks Chandresh ..

But Mr A has issued two TDS Certificetes. Both for Rs. 100000 whereas actually the payment was made only for Rs. 100000.