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.

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32 responses to “Procedure for Refund of Excess TDS Deducted/ Paid”

  1. nikhil says:

    i had wrongly paid tds with interest, can i get refund of both (tds with interest) or only tds amount

  2. 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

  3. J P RATHI says:

    we wrongly deposit dividend tax
    so we want to refund
    pl how can we get refund of excess deposit dividend tax

  4. J P RATHI says:

    WE DEPOSIT EXCESS DIVIDEND TAX BUT NO REFUND BY DEARMENT WHAT CAN WE DO
    PL ADVICE

  5. Rajkumar says:

    Plz suggest in such cases that the tds deducted by deductor and also same amount is credited as self assessment tax ?

    Can we get refund of it ?

  6. Kundan Kumar says:

    Any query or concern relating to TDS Deposit, Filling , Refund or Processing feel free to contact on +919999424251 or write me on kundan_021@live.com

  7. 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 .

  8. Hitesh says:

    my tds has been deducted wrongly can it be claimed back? and in how many days

    • 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.

  9. chirag zed says:

    i CAN’T FILE MY ITR FOR THE A.Y. 14-15 NOW AND HAVE TAX CREDIT IN A.Y. 14-15 SO CAN I GET THE TDS CREDIT OF A.Y. 14-15 IN THE ITR OF A.Y. 15-16?

  10. MIA says:

    IF my employer has deducted TDS in excess for the first three quarters, then is it permissible not to deduct TDS on salary for the Quarter 4?

  11. lokesh says:

    Hi,

    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 .

    Thanks
    Lokesh

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