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Clarificaiton pls.

n k abhiram (CA Final , CS Final ) (629 Points)

26 April 2010

Hi I hav a small clarification, one of my friend who is a contractor he has received the payment after deducting TDS @ 2% for the Financial 2008-2009 ( A.Y 2009-2010) he is having a TDS amount of Rs 32562 approx.

On 31st July 2009 his income tax returns has been filed but he has not provided the information about TDS in his returns and has not claimed any set off against tax payable or any refund. Whether the TDS amount which is already deducted but not claimed can be cliamed now i.e for the A.year 2010-2011. He has TDS for the F.Y 2007-08 can that also be claimed now ? pls suggest me in this regard.

Thank you

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5 Replies

CA. Ashish Bihani (C.A.) (307 Points)
Replied 26 April 2010

Instead he can file revised return stating the information abt tds...

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Ritesh Jain (CA, CS in Job) (675 Points)
Replied 28 April 2010

Hi Abhiram,

TDS which is deducted from the payment of payee constitutes the part of total income of that payee. If you ask for claiming TDS benefit in next A.Y you are indirectly saying that you want to postpone the income from one A.Y to another, that will come under income escapement for one of the A.Y which is not allowed as per IT act.

So, tell ur friend to Go for a revised return.

THANX

Kalpesh Chauhan, (Tax Assistant (Accounting Technician CA FINAL CS PROF. PROG. B.Com)) (8311 Points)
Replied 15 August 2010

Originally posted by : CA. Ritesh Jain
	Hi Abhiram, TDS which is deducted from the payment of payee constitutes the part of total income of that payee. If you ask for claiming TDS benefit in next A.Y you are indirectly saying that you want to postpone the income from one A.Y to another, that will come under income escapement for one of the A.Y which is not allowed as per IT act. So, tell ur friend to Go for a revised return. THANX

Manoj BG (Tax Professional and in Service) (1795 Points)
Replied 15 August 2010

agreed with ashish

Saurabh Toshniwal (ca final) (2363 Points)
Replied 18 August 2010

u can also write an application for rectification u/s 154

Specimen application for rectification u/ft 154

To,

The Assessing Officer,

Circle......... /Ward.............

City:...................

Sir,

Ref.: Shri.............. (Name of the Tax payer)

PANo........ /GIRNo.......... A.Y..........

Sub: Rectification u/s. 154 kindly refer to your intimation u/s. 143(l)/assessment

U/s. 143(3) dated... in respect of A.Y. referred to above, wherein a sum of Rs ...has been shown as tax due.

On scrutiny of my records, I find that the following has not been considered while preparing the tax demands in the intimation/assessment order.

**1. In respect of N.S.C./Infrastructure Bonds purchased for Rs……………….. on ………………………..

*2. In respect of PPF of Rs OR UUP/LIP of Rs......................

*3. As the Law has been amended retrospectively w.e.f. 1.4.95 regarding allowability of interest on borrowed capital for construction of house-property.

*4. I also find that credit has not been allowed in respect of TDS/Advance Tax amounting to Rs……………….

*5 .......... (Specify here any other claim)..............

The certified photocopy(s)/originals in support of the above claim(s) are attached herewith for your kind perusal with a request to kindly rectify the same, as it is a mistake apparent from record.

Yours sincerely.

(Signature of the Tax payer) Address: