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E -payment of tds

Dilip Darji (Auditor) (61 Points)

06 August 2011

I had Made a Payment of TDS on Interest U/S 194A, which was not required to Pay.

Now what is the Prosedure to take the refund of Said Payment ?

and What is the Prosedure to Take this E -Payment for other TAN No ?

Please advaise me - it's Urgent

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4 Replies

Deepak Tapse (Accounts Manager - Taxation) (1771 Points)
Replied 06 August 2011

I think you have to write a letter to your assessing officer. Lets see others view also

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Suraj Agarwal (Self Practitioner in Income Tax & GST) (782 Points)
Replied 06 August 2011

I think u should file your return & claim refund in that return.

Amit (Chartered Accountant B.Com(H)) (453 Points)
Replied 06 August 2011

Excess TDS deposit is now a days is common problem ,the reason may be any thing from E payment double click to dispute by deductee .But after the excess deposit Of TDS ,Its adjustment is a big problem for the Deductor.If TDS has been deposited in excess in early part of the year then it can be adjusted in the rest of the year.Means Advance tax with in the year can be adjusted with TDS to be deposited during the same year . But the problem is arises when we have no adjustment available with the year .

Assessee can apply for a refund for excess TDS deposit subject to that he has not issued a TDS certificate to deductee(s) in respect of excess amount deducted. After getting application department can adjust the TDS against tds Deductible or can issue refund order Department has issued a Circular 285 dated 21.10.1980 in this regarding procedure for excess TDS refund ,which is reproduce here under for your ready reference.:

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 at the end of the statement, i.e., below the signatures of the person furnishing the statement." the end of the statement, i.e., below the signatures of the person furnishing the statement."

Sidhardh (Sr. Manager - Accounts) (178 Points)
Replied 06 August 2011

Another better way is, write a letter to IT AO that you have wrongly paid the TDS amount u/s 194A instead of some other section say ex: - 194C / 194J / 194I.

You can then adjust that TDS amount to actual TDS payable (if any) under the other sections which is far better than to apply for a refund.