Tax Credit

This query is : Resolved

Ameya (Querist)
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14 June 2016 Dear Sir, Company ABC LTD deducted Tds of X but while filing tds return it was wrongly reported to credit of Y.Y filed his IT return taking credit of wrong Tds.After that ABC revised it's TDS return.Noe X took credit of the same through 26AS.In this situation,what is the stand of the department?

Amol S Joglekar

Amol S Joglekar (Expert)
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15 June 2016 Dept can recover the excess credit given to Y

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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15 June 2016 Department has to raise a demand on Y along with interest.

Rupesh Jain

Rupesh Jain (Expert)
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15 June 2016 department make demand from Y.

Ameya

Ameya (Querist)
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16 June 2016 but what if Y increases his corresponding income to take the credit?

Amol S Joglekar

Amol S Joglekar (Expert)
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16 June 2016 It is other way round as per our understanding......tax is the function of income and NOT income is the function of tax.... your views please

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Ameya

Ameya (Querist)
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18 June 2016 Absolutely agreed Sir,But what would be the consequences if such credit is taking by increasing the income?Will the dept accept the same?

Amol S Joglekar

Amol S Joglekar (Expert)
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18 June 2016 no questions asked if a person is offering to pay a reasonably HIGHER tax.