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TDS Refund denial as deductor did not filed e-return

Arihanth Jain (Chartered Accountant) (1226 Points)

21 June 2011

Post Office deducts tds on some commission payable to various persons who's total income is within minimum tax slab, hence such tds eligible for refund on filing of return in individual capacities.

But AO denies the refund for such persons as the Post Office did not file tds e-returns. AO tells that refund can be granted only if the Post Office files e-return.

What are the options available for such persons to claim the tds portion?

Further what if the Post Office remits tds to Govt by mere book entries only.

Please advice.
Thanks in advance.

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8 Replies

Dipjyoti Majumdar (CA in service & CS. dipmaj@ rediffmail.com ) (3468 Points)
Replied 21 June 2011

Has the PO (deductor) issued form 16A to deductee. If the deductee has form 16A at least he can contest with AO to take up the matter with deductor or through CIT TDS administartion.

But the real problem is if you do not even ahve the TDS certificate. Then how do you conclude that the amount deducted represents TDS and not anything else likediscounts/damages etc. You and I can understand , but not everybody.

I dont think there is any remedy available except reporting the malpractice to CIT TDS or file a money/civil suit.

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U S Sharma (glidor@gmail.com) (21063 Points)
Replied 21 June 2011

ask post office to issue TDS certificate for tax deducted.

CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 21 June 2011

you can show the department tds certificate received from post office

Arihanth Jain (Chartered Accountant) (1226 Points)
Replied 21 June 2011

Here form 16A is issued by Post Office but AO tells since e-return is not filed refund cant be given. And Post Office officials are not willing to file the returns.

Please advice where the individuals can appeal.

Dipjyoti Majumdar (CA in service & CS. dipmaj@ rediffmail.com ) (3468 Points)
Replied 21 June 2011

The AO must be passing 143(1) intimation or order. That order can be appealed to CIT (A). section 154 can also be used.

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CA AMIT AGRAWAL (Chartered Accountant) (173 Points)
Replied 23 June 2011

WHAT IS SECTION 154

Dipjyoti Majumdar (CA in service & CS. dipmaj@ rediffmail.com ) (3468 Points)
Replied 23 June 2011

application for rectification of order on which there is no debate, no two opinion can be formed

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 23 June 2011

Originally posted by : Arihanth Kumar Jain G
	Here form 16A is issued by Post Office but AO tells since e-return is not filed refund cant be given. And Post Office officials are not willing to file the returns. Please advice where the individuals can appeal.

follow the steps carefully

write your complaint to

1) Concerned post office under copy to ......... a) General Post Master of your city b) CIT (TDS) of your zone, alongwith details of your TDS deducted ( attach a xerox copy for reference)

2) send reminder after 3 weeks if no positive responce

3) in case of no fruitful responce, follow the step 4 below

4) write the details to "Incometax Ombudusman" of your zone, with copies of all communication served to post office, zonal post master, CIT (TDS) and copy of TDS certificate, with a prayer to look into the matter and do the needful.

Within 30 days of your letter they will communicate you and in very short time your matter will be taken on priority basis by CIT(TDS) and postoffice.