Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Tds refund is income?

28 November 2016

The refund on TDS I receive from Income Tax department by filling ITR is counted as Income in the fiscal year the refund is credited to my account by Income Tax department? If yes then I have never included this as income in my ITR, what should I do?

Reply
Follow
Share

11 Replies

PRADEEP BANSAL (Partner) (33 Points)
Replied 28 November 2016

Tds refund received as per assessment order is not income . interest on Tds refund is our income and will show in income from other source.

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

Wae Jing Lonthaw (Others) (341 Points)
Replied 28 November 2016

Originally posted by : PRADEEP BANSAL
	Tds refund received as per assessment order is not income . interest on Tds refund is our income and will show in income from other source.

I think you are wrong, I just read a article in EconomicTimes yesterday and it explained that TDS refund is a Income and it was published becuase lots of ITR processing is getting delayed this year.

Abhishek (Student CA IPC / IPCC) (143 Points)
Replied 29 November 2016

TDS credited to ur account is the income of last year, therefore it is not taxable, but if u hv received any interest by income tax department on such refund amount then it is treated as current year income and is taxable as income from other sources.

amit aggarwal (Tax Professional) (80 Points)
Replied 29 November 2016

Income tax is not a business expense for the purpose of tax caculation. Therefore, refund of tds is just a return of excess tax paid by you and hence, shouldn't be classified as income.

Hitesh Khanna (Accounting & Finance Taxation Company Law Audit ) (839 Points)
Replied 29 November 2016

Just like Self Asst Tax, TDS is also a form of Tax.
Since we do not claim TAx as an expenses, the same way refund of Tax cannot be treated as Income.
Any amount of Refund in excess of the Filed return to be treated as income.
This is the basic ruling

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

Wae Jing Lonthaw (Others) (341 Points)
Replied 29 November 2016

When I filed ITR, the Interest received on FD was calculated after reducing the TDS from it. Hence in my case TDS refund should be shown as income in next fiscal year since last year I reduced it when entering in "Income from Other Sources" section....

PRADEEP BANSAL (Partner) (33 Points)
Replied 29 November 2016

you should show interest income as per form 16A received from bank.

Sagar Dilip Madane (Accountany) (28 Points)
Replied 29 November 2016

As per my knowledge Refund come after calculating tax and you have all ready paid tax on last year income.. Hence refund income is not taxble

1 Like

varun (student) (49 Points)
Replied 29 November 2016

Refund can not be taxed as income, Interest will be taxed as the the income on which tds was deducted was taken in consideration during the previous tear.

MANOJ A (Passion) (52 Points)
Replied 29 November 2016

Gross income(which includes TDS) goes to P&L account . If we Tax TDS again it results in cascading .

TDS is nothing but income tax .Income Tax can not be allowed as a bizz expense as per IT Act and neither under MAT or AMT.

Usually Income tax provision is created at the end of the year (Ascertained Liability) and any TDS / Advance Tax is adjusted against tax amount while paying..

TDS receivable is an asset and any amount received as interest on refund is INCOME..

Hope this may help u.