Mistake in e filing of itr and refund

CA GOVIND KRISHNA AGARWAL (CA) (202 Points)
Replied 24 November 2011

ISSUE 1)

1)See Firstly the Status of ITR will shown when copy of ITR V duly signed by assessee will reached the Banglore address.

2) If at the filling of ITR you has choosen the option to credit the refund in the Bank A/c Directly then it will Deposited by the department directly otherwise cheque will be issued.

3) If you have choosen that refund will directly deposited into bank then you should file revised return with correct MICR code. BCZ

REVISED RETURN:-If somebody wants to re-file his return with some modification or changes it its old already filed return it is called revised return.

If a person feels some omission or wrong statement in its old filed return he can refile its return for any previous year at any time before the expiry of 1 year from the end of the relevant assessment year or before the completion of the assessment.

ISSUE-2

In my opinion you have to claim the refund of both the amount because deductee responsibility is only upto the extent of receiving the TDS certificate. Deducttee is not responsible for whether e-filling of TDS has been made by the Deductor or not.

1 Like

k.sampathkumar (CA Practise) (69 Points)
Replied 25 November 2011

ISSUE2

Here Deductee is ready to claim the refund, but the problem is with the IT dept.

I heard that IT dept will not give the refund for the TDS deductions of which E filing has not been done by the deductor unless we follow some procedure which I am not sure of that procedure.

Whether is it true? If it is true , Could you plz tell me the procedure of the same to claim the refund for the balance portion(TDS for which e filing has not been done by the deductor)

satish kumar voleti (A.C.A., (ICWAI)) (1686 Points)
Replied 26 November 2011

Hai

1 st Thing. If you can trace out the deductor and if you have any contacts with him, then you ask them to revert your TDS amount to you, i feel that that deductor would not have deposited TDS with your PAN to the department if that is true, then ask them to pay back to you the TDS amount deducted.

2nd thing.

If the deductor alreayd paid that amout to the Department, then you claim the Refund based on the TDS certificate given by the deductor and ask the deductor to make efiling of TDS returns so that you can claim that refund. If that deductor is not filing the TDS returns, then based on your inocme tax return the department may issue notice for the deductor to file the Etds returns but that will take time you have to waite for that.

Every assessee is facing the same problem.

hope that you come out of this, with refund

bye.

Dhananjay Reddy (Audit Manager) (194 Points)
Replied 26 November 2011

hi.

with regard to the first issue, as per my previous experience there is no need to file revised return, as IT dept. will send a refund cheque to the concerned address if ECS (Electronic clearing system) is not done beocz of incorrect MICR or Incorrect bank account no. etc...

with regard to second issue, same problem was faced by me with regard to my clients.

here deductor (Post office dept.) does not care for filling its e-tds returns qauterly. But post office will pay the TDS collected from agents to the credit of govt. Since e-filng of TDS was not done, TDS will not be credited to account of assessee (deductee) which the same can be verified by logging in Income tax site by downloading Form 26AS. So the IT dept will never issue the refund claimed untill e-TDS was filed by deductor. Becoz of this the comission agents are facing problem in claiming their refund cheques.

In many cases we faced the same problem. In such cases the only solution is u can approach the Income tax dept and file an affidavit with the dept.

Ravishankar P (Associate Vice President) (142 Points)
Replied 27 December 2011

A lot of the above answers are confusing & misleading. A lot of FAQs are there in the E filing website which may be referred to:

To summarise:

In case the returns have been E filed the following steps may be taken:

Issue 1 - Wrong MICR:

High probability that the refund would have got errored out at the refund banker - SBI's end. Pls call the CPC Call Centre 1800-425 2229. to check the status of the refund. Secondly if the MICR code needs to be corrected, pls download the response sheet from the E filing website and send it by post to CPC along with a cancelled cheque which has the correct MICR no. The refund reissue request will be automatically initiated and should generally reach the assessee in about 14 days.

A revised return is NOT NEEDED to be filed

Issue no 2: Tax Credit issues

Even if E filed, CPC generally does ot process returns where there are tax credit mismatches between what is claimed by the assessee and what is available in the 26AS database. These ITRs generally get transferred back to the concerned AO for processing, as CPC has no processes to check the TDS certificates. By default it is best to contact the AO. The AO has the powers to verify the TDS certificate given and give appropriate tax credits and thereby payout the refund.

SRIKAR BABU (AM) (102 Points)
Replied 28 December 2011

Hai,

Lot of people facing the same problem with Post Office on their TDS deduction. In case, if ther is no refund then it is ok. We may get 143(1) then we submit 154 petition then it will be transferred to AO later issue will be closed by AO.

But, in case of refund, IT department won't issue refund unless TDS amount reflected in Form 26AS. Even CPC won't forward the case to AO as there is no tax demand. Moreover, IT Department is stretching on assessees to follow the deductor get it done so that TDS credit appears in Form 26AS. In real time with departments like postal it is very difficult task as those people may even not aware about eTDS filing and all those things.

Follow, advise of Mr. Dhananjaya reddy and submit affidavit with AO, also send copy to CPC, Bangalore and wait for refund.

Ravishankar P (Associate Vice President) (142 Points)
Replied 30 December 2011

Just two clarifications here

1. Srikar is right about computation of refunds at CPC. The process I had highlighted above for refund reissue holds good only if a refund is computed.

2. Sending a copy of any communication to CPC is not of any use. CPC does not have any mandate to act on any communication beyond rectification request u/s 154 or for refund reprocessing.

The best starting point would be to call the CPC call centre and confirm the refund status and then take appropriate action.

pradip Kachhadiya (partner) (25 Points)
Replied 22 February 2012

Individual return was filed (E filing) with incorrect Bank A/c no. This ITR is having a IT refund. After 1 month from the date of filing return. My client had closed that a/c which is marked as default account for Refund purpose in ITR, without my knowledge. Now the refund cheque is issued by IT department mentioning that discontinued bank a/c no. My concern is, can i deposited that refund cheque in another bank a/c. If not pl. Suggest me what should i do for reissue of refund cheque with existing Bank A/c no.