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How to get back IT Credit????

Vinay (Articled Assistant) (198 Points)

08 March 2012

One of my frind had filed his IT return for the AY 2010-011, Where he has paid an excess amount of Rs.1,60,800 as self asst. tax and while filing the return of income he did not considered the excess amount paid(by mistake). Now he has received an intimation u/s 143(1) for the AY 2010-11, whrere CPC also not considered the excess amount which is standing in credit(26AS), How to get back the amount??? Can we take this credit as reversal to following AY..? Since the intimation has been received and original return is filed after the due date, a revised return is also not possible..??

Is it better to forget Rs.1,60,800??????

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8 Replies

Anumanchipalli Sathikonda (Tax Consultant) (1349 Points)
Replied 11 March 2012

Mr.Vinay

The assessee can move an application u/s 154 requesting for credit of tax paid u/s 140A and refund of the same.

Any how let me know what are the circumstances that prompted the assessee to pay sum huge amount of tax u/s 140A. You are aware that the tax paid u/s 140A is arrived at the total income concluded by the assessee himself.

Best Wishes

Sathikonda

1 Like

Vinay (Articled Assistant) (198 Points)
Replied 12 March 2012

Earlier one of his relative was looking up his tax related issues.., the assessee neither aware of the payment nor he was informed about the payment. While computing the his tax liability for AY 2010-11 we did not look into his 26AS, Directly we computed the tax libility, earlier he had paid a sum of Rs.1,00,000 as Advance tax and a balance sum of 53+K was paid as self asst tax.., We came to knw about that payment when we were computing AY 2011-12 tax laibiltiy..,

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 12 March 2012

filing rectification u/s 154 is only solution, please check the time limit from the date of communication of intimation u/s 143(1), normaly its 30 days

1 Like

Anumanchipalli Sathikonda (Tax Consultant) (1349 Points)
Replied 14 March 2012

Mr.Vinay and Mr.U.S.Sharma

An order u/s 154 of Income-tax Act, 1961 can be passed within four years from the end of the financial year in which the order sought to be amended was passed.

Please see the provisions of sub-section (7) of Section 154 of Income-tax Act, 1961.

The thirty (30) days time limit is the time limit to file an appeal before the commissioner (Appeals) u/ss 246 and 246A. Please see sub-section (2) of 249 of Income-tax Act, 1961.

No fee is payabale for moving an application u/s 154. The prescribed fee has to be paid for filing an appeal. Please see sub-section (1) of Section 249 of Income-tax Act, 1961.

Best Wishes

Sathikonda

1 Like

CA Vanamala Phani Kumar (Proprietor of M/s Vanamala and Co) (972 Points)
Replied 14 March 2012

You can file rectification by uploading Rectification XML by login into your a/c and mentioned it clearly the details about self assessment tax details

We can claim refund amount with interest U/s 244A

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Anumanchipalli Sathikonda (Tax Consultant) (1349 Points)
Replied 14 March 2012

Mr.Manish Negi

If there is a mistake in the return filed by an assessee, it can be rectified by filing a revised return if there is time to do so. Section 154 is meant for rectification an order passed by the Income-tax Authorities or an intimation framed u/s 143(1).

Best Wishes

Sathikonda

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CA SACHIN VIJ (Chartered Accountant) (112 Points)
Replied 15 March 2012

First of all - revised return could be filed before the completion of assessment. Since notice u/s 143(1) is already issued the same would not help.

Second - rectification u/s 154 could be filed in relation to any mistake apparent from record in the order. Since there is no mistake in the order (actually the mistake is in filing the return of income and return was processed accordingly). The same would not help.

But still i say you could put the facts before the AO and file app u/s 154. Now a days not all AO are vicious. A genuine AO would definitely understand the situation and would help even if the same is slightly away from guidelines.

1 Like