Gaurav Raj (37 Points)
15 March 2025Hello.
One of my colleague have mistakenly deposited excess amount in Challan for updated return for AY 22-23. Suppose if there is additional tax of 50,000 he have deposited 1,00,000.
What should we do now? Is there any way to claim the excess money as refund or adjust it somewhere like in the upcoming AY.
Please help so the return can be filled before 31st March.
Thank you.
Rama chary Rachakonda
(Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294)
(6829 Points)
Replied 15 March 2025
Please file the updated return ITR-U for your excess challan amount adjustment
Van Kumar
(4 Points)
Replied 16 March 2025
in ITR-U, one cannot claim excess tax paid as refund... I donot think thats the solution....
MPR Sanjay Kumar
(3131 Points)
Replied 16 March 2025
If your colleague has mistakenly deposited an excess amount of ₹1,00,000 instead of the required ₹50,000 for the updated return for AY 22-23, here are the steps to claim a refund or adjust the excess payment:
1. Claiming a Refund
Your colleague can claim a refund of the excess tax paid under Section 237 of the Income Tax Act. Here's how to proceed:
File Income Tax Return (ITR): Ensure that the ITR includes the correct taxable income and reflects the excess payment. The excess amount should be shown in Form 26AS.
Verification: The refund will be processed by the Income Tax Department upon verification. It’s essential that the excess amount is correctly reflected in Form 26AS.
Refund Process: Generally, once the ITR is filed and verified, the refund process is initiated by the department. Your colleague does not need to file a separate claim for refund; it will be automatically processed if there is an excess payment.
2. Adjusting Excess Payment Against Future Liabilities
If your colleague prefers to adjust the excess payment against future tax liabilities instead of claiming a refund:
Carry Forward: The excess amount can be adjusted against future tax payments. This means that when filing taxes for the next assessment year (AY 23-24), your colleague can deduct this excess amount from any tax due.
3. Important Considerations
Ensure that all necessary documentation is in order and that the return is filed before March 31, 2025, to avoid any penalties.
If opting for a refund, keep track of any communication from the Income Tax Department regarding the status of the refund.
4. Filing Deadline
Make sure to complete these steps before the deadline of March 31, 2025, to ensure compliance and avoid any issues with tax filings.
By following these steps, your colleague can effectively manage the excess payment and ensure that their tax obligations are met correctly.
Gaurav Raj
(37 Points)
Replied 16 March 2025
| Originally posted by : MPR Sanjay Kumar | ||
 |
If your colleague has mistakenly deposited an excess amount of ₹1,00,000 instead of the required ₹50,000 for the updated return for AY 22-23, here are the steps to claim a refund or adjust the excess payment: 1. Claiming a Refund Your colleague can claim a refund of the excess tax paid under Section 237 of the Income Tax Act. Here's how to proceed: File Income Tax Return (ITR): Ensure that the ITR includes the correct taxable income and reflects the excess payment. The excess amount should be shown in Form 26AS. Verification: The refund will be processed by the Income Tax Department upon verification. It’s essential that the excess amount is correctly reflected in Form 26AS. Refund Process: Generally, once the ITR is filed and verified, the refund process is initiated by the department. Your colleague does not need to file a separate claim for refund; it will be automatically processed if there is an excess payment. 2. Adjusting Excess Payment Against Future Liabilities If your colleague prefers to adjust the excess payment against future tax liabilities instead of claiming a refund: Carry Forward: The excess amount can be adjusted against future tax payments. This means that when filing taxes for the next assessment year (AY 23-24), your colleague can deduct this excess amount from any tax due. 3. Important Considerations Ensure that all necessary documentation is in order and that the return is filed before March 31, 2025, to avoid any penalties. If opting for a refund, keep track of any communication from the Income Tax Department regarding the status of the refund. 4. Filing Deadline Make sure to complete these steps before the deadline of March 31, 2025, to ensure compliance and avoid any issues with tax filings. By following these steps, your colleague can effectively manage the excess payment and ensure that their tax obligations are met correctly. |
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But as per the provisions refund isn't allowed in case of Updated return. When I attach the challan with the return in WINMAN software the refund shows as zero which should be negative and even in income tax portal I see the warning related to the same saying that the challan amount is more than the tax payable.
So how can I claim refund.
CAclubindia
