Analysis of  CIRCULAR NO. 2/2011 [F.NO. 385/25/2010-IT(B)], DATED 27-4-2011

If a deductor has deposited excess amount of TDS , the procedure for getting refund was given in Board Circular 285 dated 21-1-1980. Now CBDT has issued new circular in this respect.

  • This Circular 2/2011 is issued in  suppression of  circular No 285/ 21-10-1980
  • It covers TDS sections 192 to 194LA
  • It does not cover TDS on non-resident payments i.e. section 192, 194E and 195 ( which are  separately covered by circular No. 7/2007)
  • It covers refunds for the period upto 31-03-2010 .
  • Refunds for period thereafter will be covered under provision of section 200A which prescribes processing of TDS Statements

Excess to be refunded :

The excess payment to be refunded would be the difference between:

  • the actual payment made by the deductor to the credit of the Central Government; and
  • the tax deductible at source

Excess payment discovered during financial year

In case such excess payment is discovered by the deductor during the financial year concerned, the present system permits credit of the excess payment in the quarterly statement of TDS of the next quarter during the financial year.

Excess payment discovered after financial year

  • In case, the detection of such excess amount is made beyond the financial year concerned, such claim can be made to the Assessing Officer (TDS) concerned.
  • However no claim of refund can be made after two years from the end of financial year in which tax was deductible at source.

Safeguards to avoid double claims

To avoid double claim of TDS by the deductor as well as by the deductee, the following safeguards must be exercised by the Assessing Officer concerned:

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.

Prior  approval of the Additional Commissioner  is required for refund in excess of Rs. 1 Lakh

Prior  approval of the  Commissioner  is required for refund inexcess of Rs. 10 Lakhs

After meeting any existing tax liability of the deductor, the balance amount may be refunded to the deductor.

Procedure to file refund application in case of TDS:

  • Step 1: Login to TRACES website and Go to “Request for Refund” under “Statement Payment Tab“
  • Step 2: Go to Refund Checklist and click on “Proceed “
  • Step 3: Please select Section code:
    • Refund Request for Challan u/s 195
    • Refund Request for Challan other than sec. 195
    • Select Appropriate reason for raising the Refund Request, Click on “Add Challan” after selecting appropriate reason for raising Refund Request.
  • Step 4: Give challan details & if challan pertains to appeal order than enter appeal order number for which deductor wants to claim refund.
  • Step 5: Give Bank details to submit refund request.
  • Step 6: Verification page: Click on “Proceed” to continue TDS refund request.
  • Step 7: Confirmation Page: Click on “Submit Refund Request” to continue TDS refund request.
  • Step 8: Select a “Digital Signature” and proceed.
  • Step 9: 26B has to be submitted within 14 days to the Assessing officer.
  • Step 10: Request will be available under “Track refund Request”.
  • Step 11: Under “Track Refund Request” select search “Option “1 or Option 2” to view Refund Status with remarks.

Some Important information to raise request for Refund on traces:

  • Deductor can apply for TDS refund from FY 2007-08 onwards.
  • It is mandatory to register digital signature on TRACES to submit the Refund Request
  • PAN of Deductor should be same as per TAN Master and TRACES profile and should be non blank.
  • A refund request consists of maximum of Five Challans. For claiming more challans, submit new request.
  • Maximum refund amount will be the minimum challan balance amount in the challan history.
  • Available amount per challan must be greater than Rs.100/-.
  • Ensure that all statement in which the challan has been claimed have been processed before claiming refund for the challan.

Sample example of ‘Maximum Refund allowed calculation’ provided by TRACES for better understanding:

TDS Refund example TRACES

Pictorial guide of TDS refund is also provided by TRACES for easy understanding of Users. The link of the same is as under –

Also Read-

More Under Income Tax


  1. Sumi says:

    Bank have deducted tds 20% on my fdr because I don’t submitted my PAN in bank account in FY 2019-20, And that entry also not showed in my 26 as form. So is there any way to add this fdr intt entry in my 26 As form.

  2. ROMAN AHMAD says:

    MY TDS PAYABLE AMOUNT is 6000/- But wrongly i Paid 60000/- how i reverse my excess amount which i paid.
    please help me.

    1. TARIQUE RIZVI says:

      With kindest regards I would like to submit with you the below given query

      While making payment of TDS instead of paying Rs 1,000 we have paid Rs 10,000 for Q-4 fy 2019-20 .

      So while revising the said TDS Return can we feed the excess amount of Rs 9,000 in the column of others in the Annexure I (deductee details) against the said challan through on-line correction


      whether there is any surety that the excess payment of Rs 9,000 shall be carried forward for the next financial year 2020-21 which we will use as per our requirement.

      yours tarique rizvi

      982 1630 130

  3. swathi says:

    sir i have paid 5 months tds on rent with diff address rent has not paid to that address
    what will happen to that tds paid amount
    how can we adjust this tds

  4. CA H K VARSHNEY says:

    Query – What are the Remedies available of not CLAIMING TDS Refund within two years by deductor under tds provisions or in such case application for refund has been rejected by AO.

  5. GSVS Avadhani says:

    TDS deducted and paid to the department under challan 281 u/s 194I instead off 194IB (26QC)

    how to claim wrongly paid amount from department

  6. Pratibha Ghanwat says:

    Dear Sir, I am Pratibha,
    I have paid extra tcs. Tcs amt is Rs. 154/- but I have paid Rs. 4500/- How can i get back the excess amount .PLease help me out ,,i am so tense .

    1. subhajit sarkar says:

      i have paid withholding tax for purchase of property( price more than 5000000lakhs) for the instalment paid twice out of mistake by filling form 26 QB. how to claim refund.

  7. chirag zed says:


  8. lokesh says:


    I have transferred excess TDS on rent
    Every month i have to pay 6500 per month but bimistan i paid 65000.

    How can i get back the excess amount .

    PLease help me out ,,i am so tense .


  9. Tushar Vasavada says:

    Is a Private Limited Company required to claim the amount of TDS deducted from its payment within a particular time frame. Is a Pvt. Ltd. Company required to file quarterly tax returns and claim TDS deducted from its payment within the same quarter? Can a Pvt. Ltd. Company claim the total amount of TDS from their payment when filing final balance sheet?

  10. Ravi says:

    If private limited company tax liability is less than the amount of TDS deducted by the others on the behalf of it.

    1.Will the department refund TDS amount before completing the assessment ?
    2. If Yes what will be the time period for getting refund of TDS

  11. A K SHARMA says:

    I as the person responsible for deduction of tax at source (ITDS)in my company, by mistake deducted tax on an amount payable to another company as reimbursement and deposited the same with income tax authorities and also filed the TDS return accordingly. The deductee has not claimed claimed the credit and has asked for payment the balance amount deducted as TDS from their claim. Please suggest me how can I claim back the refund of TDS wrongly deducted and deposited in the Govt. Account as TDS.

  12. pramoth says:

    I submitted repay of tax before six month, I got msg that the process is going on. what would be the time period for repayment. pls respond me about this query.

  13. VAMI SHAH says:

    Sir I have deducted the TDS once but by mistake I have made the payment twice of challan U/s. 194J for Asst. Year 2013-14 & Asst. Year 2014-15 & also file the Tds return for Q4 of Asst. Year 2013-14 & Q1 of Asst. Year 2014-15 showing the credit of two challans respectively , Now what should i do to rectify the mistake & claim the excess deduction

  14. REENA says:



    Sir, I have my FD account in SBI, GOPAL GANG BIHAR. An amount of Rs 7483 + 410 has beed deducted as TDS for interest incurred in my FD for financial year 2011-2012. Since the same is not being reflected in 26AS online, I am unable to file tds refund online. Bank has given me the deduction letter on its letter pad. How should I proceed to file TDS further.



    Dear Sir, 24/1013
    I had applied for my TDS return long back & I also recd refund for my ack no 604389250300313 for AY2012-13has been issuedby cpc .
    If any docus if required let me know. I m willing to send unsigned to for your ref.
    If any problem arise pl.callor mail tome on my mail id. [email protected] //[email protected]
    Also my mob. nois 9702701513//9702018089.
    I hope you will look in this matter &reply me at the earliest.
    thanking you

    Michael F Dsouza

  17. prakash says:

    main ek maharashtra govt. ke office me karyarat hun..
    march/2013 ko ek party ka machinery purchase ka bill pass karte samay bill me se by mistake Rs. 34000/ TDS deduction kar ke govt. treasury se bill pass kar ke TDS govt. head ko adjust kiya gaya.

    ab jis company se machinery purchase ki thi wah kaheti hai ke hamein pura Amt. chahiye…kya TDS ka 34000/ wapas milega….milega to kaise aur kise…

    pl. help us. Thanks

  18. SAUMYA SUR says:

    can i ( our company ) refund the tds amount against wrongly deposited u/s 194h(non company) during the year 2013-14 rs. 2400/- . if refundable what is the process???

  19. pankaj patel says:

    i had paid my TDS tax online u/s 94A (TDS on interest other than securities) on 01/04/2013 for A.Y.2013-14 for the 4th qtr, while paying TDS of Rs.1,12,305/-, i had wrongly paid additional/excess Rs.1,12,305/- as interest, hence total of Rs.2,24,610/- i.e.(tds Rs.112305 + interest Rs.112305) are paid from my bank account.
    Please suggest how can i get the additional/excess paid TDS amount.

  20. Parag Prajapati says:

    We have made TDS payment Section 94J Twice for the month of March-13 ( Asst Year 2013-14 – Actual Payable- 27800/- Paid Twice 27800 + 27800 ) How can Refund it?

  21. Amit Parmar says:

    i have filed return for the a.y 2012-13 and also assessment order are completed and issued refund cheque thereafter by mistack it was misplaced so please what process for it matter

  22. som parkash gupta says:

    my name is som parkash gupta i have paid exces tds. i filed the return for two years 2010-12 AND 2011-12 RESPECTIVELY.The refund order has been MADE returned , DUE NON PRESENC.i requested number of times to sed me refund but no action has been pan no is ADDPG9211F, date of birth is refund is issued vide CMP-6923796 OCT.12,2012 FOR 1011-12 EQ 829198743N AND cmp 829196169 in OCT.11 2012 EQ-829198743. look into the matte

  23. N. K. Bhatt says:


    We are into the 4th ‘quarter’ of the current FY 2012-13. My PDA (Bank Of Baorda)
    has been deducting Tax at Source from my Defence Pension @ Rs3,300/- during the last 10 months from April 2012 to Jan 2013.

    When I look up my Tax credit on line at TIN (From 26 A), I find that only Rs. 9,900/ have been deposited from Oct 2012 to Dec 2012 (incl).

    I seek your advice as to what should I do now? My Bank manager is not able to give a satisfactory reply to my query.

    Thank you,

    N K Bhatt

  24. prasanna says:

    Dear sir,

    for 2009-10 accounting year, we are having A and B pvt ltd company, in this we are rising Bills to client in A Company but tds received in B Company name as per 26 AS, that IT Dept are asking to liability on 26 AS basis, how do we solve this problem any section reference i there for the same please refer me

  25. DEBASISH GIRI says:

    One massege receive from cpc bengalore regarding it refund. But till date no DD or letterfromyou. Pl.confirm. My Mobile no. 9433164638, Pan No.AFDPG9185Q , Date of Birth 15.07.1962.

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