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Tds deposits twice - ????????????

CA. BIJENDER KR. BANSAL (ACA, B.COM) (8148 Points)

13 June 2009

Dear All,

Due to mistake, we have deposit TDS twice. Whether there is any provision to refund it.

Please give feedback on it.

Thanks & Regards

CA. Bijender Kumar Bansal

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11 Replies

Sourabh Sharma (CS CA (Final) M.com NCFM Derivative Capital Market Mutual Funds) (771 Points)
Replied 13 June 2009

As per my understanding there is no provision for refund of excess deposit of TDS. In case you can not adjust the same in following month, you may issue TDS certificate to vendors and they can claim refund. You can discuss with vendors to return/ adjust the said amount.
Any adjustment against the future deduction is not possible because date of deposit can never be earlier than the date of deduction.

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Jyoti Malik (ACCOUNTANT) (2644 Points)
Replied 13 June 2009

Yes Mr. Sourabh Sharma is right

Ajay Chaudhary (CA) (63 Points)
Replied 13 June 2009

Assume that u have deducted the TDS at the double rate, there is no provision for refund

DINESH OSTWAL (CHARTERED ACCOUNTANT) (32 Points)
Replied 13 June 2009

You can issue TDS certificate to the deductee for the total amount(i.e.double amount) and the deductee can claim it as refund from the Income tax department and you can request the deductee to return the excess paid

CA Dinesh Ostwal

MANISH KUMAR MEHTA (CHARTERED ACCOUNTANTS) (72 Points)
Replied 13 June 2009

see the circular no. 285 date 21.04.1980 that provide procedure of refund of TDS excess paid

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CA CS CMA Srinivasan N (ACA, ACS, CWA Inter) (1172 Points)
Replied 14 June 2009

Yes..you can either adjust the excess TDS in following month or issue form 16 for inclduing higher TDS

Aditya Maheshwari (CA in Practice) (35867 Points)
Replied 14 June 2009

You can ask your party whom TDS has been deducted double or at a higher rate to accept the TDS excess paid.

CA. BIJENDER KR. BANSAL (ACA, B.COM) (8148 Points)
Replied 15 June 2009

DEAR ALL,

THANKS FOR REPLY.

PLEASE FIND THE BELOW THE TEXT OF CIRCULAR 285 REGARDING TDS DEPOSIT TWICE. IT IS ISSUED BY IT DEPTT ON 1980.

WHETHER IT IS VALID NOW , WHEN ALL THE PROCEDURES AS WELL AS PROVISIONS REALTED TO TDS HAVE BEEN CHANGED.

WHETHER WE CAN REFUND CLAIM AS PER THIS CIRCULAR.

Q. EXCESS TDS WAS DEDUCTED & DEPOSITED. IS THERE ANY REMEDY?

A. CBDT issued circular No 285 [F No 275/77/79-ITB] dt 21/10/1980 which is given below and self explainatory

"Procedure for regulating refund of amounts paid in excess of tax deducted and/or deductible

1. The Board have been considering the manner of refunding the amount paid in excess of the tax deducted and/or deductible (whichever is more) under sections 192 to 194D of the Income-tax Act. The Board are advised that such excess payment can be refunded, independently of the Income-tax Act, to the person responsible for making such payment subject to necessary administrative safeguards.

2. In suppression of the earlier instruction on the subject, the following procedure is laid down to regulate the refund of such excess payments.

3. 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 amount should be adjusted against the existing tax liability under any of the Direct Tax Acts. After meeting such liability the balance amount, if any, should be refunded to the assessee.

4. Where the tax is deducted at source and paid by the branch office of the assessee and the quarterly statement/annual return (in case of salaries) of tax deduction at source is filed by the branch, such branch office would be treated as a separate unit independent of the head office. After meeting any existing tax liability of such a branch, which would normally be in relation to the deduction of tax at source, the balance amount may be refunded to the said branch office. The Income-tax Officer, who will refund the amount, would be the one who receives the quarterly statement/annual return (in case of salaries) of tax deduction at source from that branch office and keeps record of the payments of tax deduction at source made by that branch.

5. The adjustment of refund against the existing tax liability should be made in accordance with the present procedure on the subject. A separate refund voucher to the extent of such liability under each of the direct taxes should be prepared by the Income-tax Officer in favour of the income-tax department and sent to the bank along with the challan of the appropriate type. The amount adjusted and the balance, if any, refunded would be debit able under the sub-head Other refunds below the minor head Income-tax on companies major head 020Corporation Tax or below the minor head Income-tax other than Union Emoluments major head 021Taxes on incomes other than corporation tax according as the payment has originally credited to the major head 020Corporation tax or the major head 021Taxes on incomes other than corporation tax.

6. 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 adjustment/refund should be done in the quarterly statement of TDS/Annual return (in case of salaries) under the signatures of the Income-tax Officer at the end of the statement, i.e., below the signatures of the person furnishing the statement."

PLEASE GIVE FEEDBACK ON IT.