ITR Refund Query: Adjust TDS to Reduce Penalty?

This query is : Resolved

Quick Summary

A taxpayer with Rs. 12,000 TDS has a Rs. 1,000 penalty and wants to know if they can adjust the TDS to reduce this penalty when filing their Income Tax Return (ITR). It's clarified that an updated ITR (ITR-U) cannot be filed if there's a tax refund. However, filing a regular ITR by paying the penalty and potentially not claiming the full TDS might be an option, though the excess TDS would need to be addressed.

Suresh S. Tejwani

Suresh S. Tejwani (Querist)
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10 February 2023 MR. A HAVE RS. 12000 TDS IN HIS 26AS , CAN MR. A REDUCE HIS PENALTY OF RS. 1000 BY ADJUSTING FROM TDS RS. 12000 AND FILE ITR ?
OR HE NEED TO PAY PENALTY OF RS. 1000 ALSO ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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10 February 2023 What is net tax liability before penalty of Rs. 1000/-?
Whether ITR was filed earlier?

Suresh S. Tejwani

Suresh S. Tejwani (Querist)
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10 February 2023 ITR WAS NOT FILED EARLIER AND TOTAL INCOME IS APPROX 4,50,000 HENCE TO TAX LAIBILITY AFTER 87A

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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10 February 2023 There being refund of tax, you cannot file updated ITR.
There should be some tax liability to file ITR U.
You can file ITR u/s. 119(2)(b) of IT act.

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Suresh S. Tejwani

Suresh S. Tejwani (Querist)
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10 February 2023 IF Only Claim TDS of Rs. 900 and pay Rs. 100
then ITR can be filled ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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10 February 2023 Then what about the excess TDS amount of 12000-900? Where to adjust it?

Suresh S. Tejwani

Suresh S. Tejwani (Querist)
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11 February 2023 will not claim tds since we can not claim tds refund in ITR- U.
then can we file ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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