Excess TDS paid of a party

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Yajuvendra Rawat (Querist)
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20 May 2011 Dear Sirs & Friends,

One of our company had deducted excess TDS of a party in F.Y. 09-10, instead of 5,000/- they had paid Rs. 50,000/- as TDS. TDS certificate issued to the party was of Rs. 5,000/- only. Can we get a refund through cheque or cash of the excess TDS deposited by us. Is there any procedure to obtain the excess TDS deposited. Please help me in the same.

Regards,
Yajuvendra Rawat

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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20 May 2011 A circular has been issued by the Central Board of Direct Taxes (CBDT), Circular No. 2/2011 on 27 April 2011, about the procedure for refund of excess payment of TDS from payments to residents.

The new Circular is applicable for refunds of the period up to 31 March 2010.

The procedure for refunds for the period from 1 April 2010 is governed by Section 200A.

Under the old Circular, no specific time limit was provided for claiming the refund of excess TDS by the deductor. Under the new Circular, claim for refund of excess TDS needs to be made within a period of two years from the end of the financial year in which the tax was deductible at source.
This effectively means that the claim for refund can be made only for financial year 2009-10 on or before 31.3.2012.
Such Claim can be made to the concerned AO(TDS). Necessary documents and indemnity bonds are required to be produced before the AO.

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