Rachit (Analyst) (913 Points)
31 January 2012Can the Income Tax Assessing officer deny grant of TDS credit claimed in the return of income as the same is not being reflected in Form 26AS statement of the assessee, maintained by NSDL?
Please provide with relevant case laws to this effect. Also kindly provide the section under which such power is granted to ITO.
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 31 January 2012
non reflection of TDS so deducted indicates that the deductor has not paid the TDS so deducted, hence the same is not available for credit to the assessee,
the person has to visit the deductor and sort out the prob, so that the TDS should display in 26AS
Rachit
(Analyst)
(913 Points)
Replied 31 January 2012
In Form 16A, the deductor gives a declaration and certifies that the amount of tax so deducted has been deposited to the credit of Govt. treasury, duly detailing out such payment details.
Now in the event if the deductor does not co-operate in filing necessary E-TDS correction statements rectifying the errors in his TDS returns, the deductee should not be made liable to loose credit of the amount of tax deducted at source.
Rachit
(Analyst)
(913 Points)
Replied 31 January 2012
In Form 16A, the deductor gives a declaration and certifies that the amount of tax so deducted has been deposited to the credit of Govt. treasury, duly detailing out such payment details.
Now in the event if the deductor does not co-operate in filing necessary E-TDS correction statements rectifying the errors in his TDS returns, the deductee should not be made liable to loose credit of the amount of tax deducted at source.
GOPAL AGGARWAL
(DOING NOTHING)
(1339 Points)
Replied 31 January 2012
AO has the power not to allow the credit which is non verifiable from the 26AS. Because AO assume that the same CAN BE bogus AS any body can prepare the Form No 16 and CAN ALSO claim the same with bogus deductor details
And in north India their are so many scams when department has to bear loss of more the 3 crores (In G****ON) due to bogus claims. So the AO will not allow the credit without verification. But if the same is not verifiable the same can be got verified from the dedcutor.
but same is not so easy as the department will not do the same EASILY AND QUICKLY
FOR THE REASONS BEST KNOW TO EVERYBODY YOU ALSO
vkbothra
(Learning )
(690 Points)
Replied 01 February 2012
AO have right not to issue the credit which is not in 26AS statement.
There were a notification for A.Y. 2009-10 and 2010-11 in that it is notified that if your refund is less than 1lac and which is not being showing in 26AS statement, will be given refund with interest after showing the original 16 and 16A forms with the application of 154.
:)
Tarun M Guntanur
(Pursuing CA Final)
(299 Points)
Replied 23 March 2012
The IT Department will not get to know about deduction of Tax by deductor, unless the same is informed in the way they want. The same has to be done by filing quarterly e-TDS returns.
If there are any discrepancies while filing these returns, TIN-NSDL rejects or doesn't accept the returns and generate defaults. So if TDS is not reflected in Form 26AS, it simply means that there would be clerical errors. If you can get the details of returns filed, the FVU file used etc, you can verify the same and you will get an answer.
With regard to non-grant of refund, we need to understand that unless the Department knows about the deduction why should they grant refund. This is an additional measure taken, since many deductors provide wrong information in Form 16A's of Form 16's. To avoid this they are taking the additional precaution. If any one wants the refund, he needs to speak to the respective deductor and get it sorted.
Abhijit Sawarkar
(Chartered Accountant)
(56 Points)
Replied 11 September 2012
CAclubindia
