Refund of Excess TDS Paid
Yes one can get refund of excess tds paid/deposited. CBDT had issued circular in April 2011 which lays down the procedure on getting tds refund prior to 1st April, 2010 and to deal with refunds after 1st April, 2010, finance act 2009 has inserted a new section 200A.
So we have also bifurcated the procedure into two parts, prior to 1st April, 2010 and after 1st April, 2010:-
Refund of excess TDS deducted on or after 01/04/2010 (i.e 1st April, 2010)
Refund of Excess TDS paid is covered under the Provisions of 200A of the Income Tax Act which is very similar to section 143(1) (deemed intimation) under which every return filed by a tax payer is processed and intimation is generated. The tax payer also gets refund, if any.
The Section 200A now makes it mandatory for Income Tax Department to process every TDS return and if refund is due on such processing of TDS return, shall be sent by the department to deductor.
Section 200A provides power to Income Tax Authority to
- Adjust any arithmetical errors/mistakes/incorrect claims apparent from any information in the statement and compute actual TDS deductible.
- Compute interest on based on the details provided in the statement for deductions and challans.
- Compute difference between payable amount as per department and paid amount by deductor .The balance will be identified as Balance Payable / Refundable.
- Department will then send an intimation to the TAN holder, mentioning the balance amount payable / refundable.
- If such an amount is refundable, department will grant the refund to the Deductor.
The aforesaid provision covers all kinds of TDS.
Refund of excess TDS deposited before 01/04/2010 (i.e. prior to 1st April, 2010)
The claim of such excess TDS is governed by CBDT Circular no 2/2011 dated 27/04/2011 which lays down following procedure for claiming refund.
This circular covers only residents having deducted TDS under section 192 to 194LA of the Income Tax Act.
No claim of refund can be made after two years from the end of financial year in which tax was deductible at source and also
The applicant deductor shall establish before the Assessing Officer that:
(i) it is a case of genuine error and that the error had occurred inadvertently;
(ii) that the TDS certificate for the refund amount requested has not been issued to the deductee(s); and
(iii) that the credit for the excess amount has not been claimed by the deductee(s) in the return of income or the deductee(s) undertakes not to claim such credit.