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Please furnish the high ratio of refund to tds meaning

Pardeep Gupta (Professional) (99 Points)

06 June 2017

Dear Experts We have received income tax scruitiny notice for our company and one of the point is "Please furnish the details of High ratio of refund to TDS". We are not clear what does it mean please suggest

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (185387 Points)
Replied 06 June 2017

"High ratio of refund to TDS"

Means when your tax liability over any transaction is say 30%, and tax deduction rate may be only say 20%, so advance tax should be paid for remaining (computed) taxable income. But suppose you have asked for more than 20% of the TDS as refund in ITR, so the logic is not set!!

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Pardeep Gupta (Professional) (99 Points)
Replied 06 June 2017

Thanks Dhiraj Lal Ji

From individual point of view this is cleary understood. Suppose my 50K tax is deducted and I claimed refund for the same then this is clear.

But we have received this notice for company. In company there were no large TDS as per 26AS and refund is there due to advance tax and large amount of depericiation.

Do we need to check the details where there is refund as per TDS return filled by us specially for salary return as per 24Q or this is solely company 's 26AS point of view.

Kindly clarifiy.

Thanks

Pardeep

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (185387 Points)
Replied 06 June 2017

" In company there were no large TDS as per 26AS and refund is there due to advance tax and large amount of depericiation."

The case is for company's refund with its 26AS data, and selected as per some abnormality in line with similar other industrial data stored in departmental database.

In your case it may be genuine, but I don't see any other reason.