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Refund of TDS wrongly deposited

SAMEER (CHARTERED ACCOUNTANT) (304 Points)

05 March 2010

Dear Friends,

Please advise me on

How can a deductor get refund of tax wrongly deposited in excess of requirement. ?
How can a deductor get adjusted TDS wrongly deposited under wrong head? (paid u/s 194C instead of 194I)

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1 Replies

Vivek Angrish (Manager Finance & Accounts) (232 Points)
Replied 05 March 2010

"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 excess amount is first adjusted against the existing tax liability of the deductor under any of the Direct Tax Acts and after meeting such liability the balance amount, if any, is refunded to the assessee."

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 the adjustment/refunds is to be done in the quarterly statement of TDS/annual return (in case of salaries) under the signatures of the ITO at the end of the statement, i.e below the signatures of the person furnishing the statement- "Circular No. 285, dt.21st Oct. 1980."