Income Tax Form No. 160: Section 434 Application for Refund of excess TDS

Form 160, introduced under section 434 of the Income-tax Act, 2025 (earlier Form 29D under section 239A), provides a statutory mechanism for deductors to claim a refund of tax deducted at source (TDS) and deposited with the Central Government where such deduction was not legally required. It applies where, under an agreement, the deductor bears the tax burden but later establishes that no tax was deductible. The form must be filed before the jurisdictional TDS Assessing Officer within 30 days of tax payment. It captures detailed information across five parts, including particulars of the deductor, deductee, agreement, transaction, and tax deposited. Mandatory disclosures, supporting documents, and justification for non-deductibility are required. The Assessing Officer scrutinizes the claim, verifies past consistency, and decides on refund admissibility. Form 160 enhances transparency, prevents duplicate claims, and ensures administrative control while facilitating legitimate refunds of wrongly deducted taxes.

Income Tax Department
Ministry of Finance, Government of India

FAQs on Income Tax Form 160 (Earlier Form 29D): Application by a person under section 434 for refund of excess tax deducted

Application for refund of tax deducted and paid where no tax was deductible

Q.1 What is Form 160?

Ans: Form 160 is an application prescribed for seeking refund of tax deducted at source and paid to the credit of the Central Government in cases where no tax was required to be deducted on the relevant income or transaction, as provided under section 434 of the Income-tax Act.

Q.2 Who can file Form 160?

Ans: A refund through Form 160 may be claimed where the following conditions are satisfied in accordance with section 434(1) of the Income-tax Act, 2025:

• Under a written agreement or arrangement, the tax deductible on an income (other than interest referred to in section 393(2), Table Sl. No. 17) is required to be borne by the person making the payment;
• Such person has deducted and paid the tax to the credit of the Central Government; and
• The person subsequently claims that no tax was required to be deducted on such income under the provisions of the Act.

Q.3 Is filing of Form 160 mandatory?

Ans: No.

Form 160 is required to be filed only where the deductor seeks a refund of tax deducted and deposited, on the ground that no tax was deductible on the relevant transaction.

Q.4 Before whom should Form 160 be filed?

Ans: Form 160 shall be filed before the TDS Assessing Officer having jurisdiction over the applicant (deductor).

Q.5 What are the main parts of Form 160?

Ans: Form 160 is divided into the following parts:

• Part A – Details of the applicant (deductor)
• Part B – Details of the deductee
• Part C – Details of agreement or other arrangement
• Part D – Details of the transaction on which tax was deducted
• Part E – Details of tax deducted and deposited

Q.6 Are details of the deductee mandatory in Form 160?

Ans: Yes.

Part B requires furnishing of complete details of the deductee, including:

• Name and status,
• PAN (if available),
• Tax Identification Number (TIN) or equivalent (in case of non-residents),
• Contact details, and
• Country of residence for the relevant tax year.

Q.7 When is Part C (Details of agreement or other arrangement) required to be filled?

Ans: Part C must be completed where the transaction arises out of an agreement or otherarrangement, and requires details such as:

• Date of signing of the agreement,
• Date on which it came into effect,
• Period of validity, and
• Proof of agreement to be attached as prescribed.

Q.8 What transactions are covered under Part D of Form 160?

Ans: Part D captures details of the transaction on which tax was deducted though not

required, including:

• Amount and date of transaction,
• Date and mode of payment,
• Proof of payment, and
• Nature of the transaction.

Q.9 Is the applicant required to explain why no tax was deductible?

Ans: Yes.

The applicant must clearly explain the legal and factual basis for the claim that no tax was required to be deducted on the relevant transaction, in response to Row 27 of the form.

Q.10 Why is information regarding past refunds required in Form 160?

Ans: The information sought in Row 28 enables the Assessing Officer to verify:

• Whether similar claims have been allowed in the past, and
• The consistency of the applicant’s position across years.

If tax deducted on a similar transaction was refunded in the preceding three years, details and copies of relevant orders must be furnished.

Q.11 What documents are required to be attached with Form 160?

Ans: The following documents are required to be attached, as applicable:

• Proof of agreement or arrangement (Annexure A-1),
• Proof of payment (Annexure A-2),
• Copy of appellate or assessment order granting refund in earlier years, if applicable (Annexure A-3), and
• Any other relevant supporting details (Annexure A-4).

Q.12 Who should sign and verify Form 160?

Ans: Form 160 must be signed and verified by the applicant or by an authorised person, who is:

• Competent to act on behalf of the applicant, and
• Authorised to make the declaration in the stated capacity (designation).

Q.13 What is the significance of Form 160?

Ans: Form 160:

• Provides a statutory mechanism for refund of tax wrongly deducted,
• Ensures administrative scrutiny before granting refund,
• Prevents undue refunds and duplicate claims, and
• Promotes certainty and consistency in TDS administration.

Guidance Note on Income Tax Form 160: Application by a person under section 434 for refund of excess tax deducted

Application for refund of tax deducted and paid where no tax wasdeductible

Purpose

Form No. 160 is prescribed for making an application for refund of tax deducted at source and deposited to the credit of the Central Government in cases where no tax was required to be deducted on the relevant income or transaction, in accordance with the provisions of section 434 of the Act.

The form enables the applicant to furnish details of the transaction on which tax was deducted, the deductee involved, the agreement or arrangement relating to the transaction, and the amount of tax deducted and deposited. The application facilitates examination by the Income-tax Department to determine whether refund of the tax deducted is admissible.

Who Should File

Form No. 160 may be furnished by a person who has deducted tax at source and deposited such tax with the Central Government but subsequently claims that tax was not required to be deducted on the relevant income or transaction.

The form is filed before the Assessing Officer having jurisdiction over the deductor, seeking refund of the tax wrongly deducted and deposited.

What is the due date for filing the Form?

Form No. 160 shall be furnished within thirty days from the date of payment of the tax to the credit of the Central Government, in accordance with section 434(1) of the Act.

Structure of Form

Form No. 160 broadly consists of the following parts:

1. Part A – Details of the applicant (deductor)

2. Part B – Details of the deductee

3. Part C – Details of agreement or other arrangement

4. Part D – Details of the transaction on which tax was deducted

5. Part E – Details of tax deducted and deposited

6. Verification

These sections capture the relevant details of the parties involved, the transaction in respect of which tax was deducted, and the basis on which refund is claimed.

What are the documents required to file the Form

The following documents may be required to be furnished along with Form No. 160:

1. Proof of agreement or arrangement, where the transaction arises out of an agreement (Annexure A-1).

2. Proof of payment relating to the transaction on which tax was deducted (Annexure A-2).

3. Copy of appellate or assessment orders granting refund in earlier years, where similar claims have been allowed (Annexure A-3).

4. Any other supporting documents or explanations relevant to the claim for refund (Annexure A-4).

These documents enable the Assessing Officer to verify the claim that tax was not required to be deducted on the relevant transaction.

What is the process flow of filing Form

The process flow broadly involves the following steps:

1. The deductor identifies a case where tax has been deducted and deposited but subsequently considers that no tax was required to be deducted under the provisions of the Act.

2. The deductor prepares Form No. 160 by furnishing the required details relating to the deductor, deductee, transaction and tax deducted.

3. Supporting documents such as agreements, proof of payment and other relevant records are attached with the application.

4. The completed form is submitted before the Assessing Officer having jurisdiction over the deductor.

5. The Assessing Officer examines the application and supporting documents to determine whether the claim that no tax was deductible is valid.

Outcome of Processed Form

Upon processing of the application:

• The Assessing Officer examines the claim made in the application and the supporting documents furnished.
• If satisfied that tax was wrongly deducted and deposited, the refund of such tax may be granted in accordance with the provisions of the Act.
• Where the claim is not found to be admissible, the application for refund may be rejected.

Common Changes made across Forms

1. To make Forms system-friendly and enable e-filing and uploading, certain anomalies found due to grouping of Name, Designation, Address, PAN and Aadhaar number have been separated into different boxes.

2. Assessment / Financial / Previous year or years have been replaced with Tax year or years, wherever appearing in the Form/Annexure.

3. Sections, Clauses and Schedules changes as per the Income-tax Act, 2025.

4. Currency symbol “Rs.” has been replaced with “₹”.