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Short receipt of income tax refund

elangovan (Tax and Financial Advisory) (217 Points)

26 May 2016

We have received refund amount less than the amount claimed in the return (AY 15-16), Amount claimed in the Return is Rs 21 Lakhs, and Refund received in 16 lakhs. However form 26 AS also shows the amount as claimed by us in return. we would like to know what is the procedure to be adopted for getting the balance amount. IT website should a demand for old AY (10-11) of Rs 4 Lakhs which was incorrect and we had replied to that, now that message does not pop up in IT website, my doubt is whether they have adjusted the incorrect demand with the refund amount. further in this case what should be our response to the department. Please help. Thanks in advance

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4 Replies

Supriya Raj (Student) (52 Points)
Replied 26 May 2016

If your company has any outstanding demand during any previous years & it has claimed refund of tax in any of the financial years, then, the IT Deptt issues a letter in the name of the company regarding the payment of oustanding demand. If within 30 days of the receipt of letter no reply is given, then the amount outstanding is automatically adjusted with the refund amount.

However in your case inspite of spontaneous reply if ur incorrect demand is adjusted with the refund, then there must be delay in reaching the response or it must not have reached the deptt.So, it is advisable to write another letter to the deptt giving reference to the previous letter & also indicating the reasons of incorrect demand.

Further, if u disagree with the demand, go the IT website by loging in with ur PAN n Password n click on "respond to outstanding demad", click on submit and select the option 'disagree with the demand'.

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elangovan (Tax and Financial Advisory) (217 Points)
Replied 30 May 2016

When we logged into the Income tax account online, now it does not show ourstanding demand, as the old incorrect outstanding demand is adjusted with the refund or the AY 2015-16, I have raised a Greivance online with respect to the refund adjustment, i would like to know if the procedure adopted is correct or any other better alternative is available.

Thanks in Advance