Late deduction of tds by bank

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 October 2011
One of my friends is having savings and other FD accounts in a nationalized bank. For the Financial Year 2010-11 the total interest (including accrued) amounts to more than 20,000/- but the bank had not deducted a single rupee towards TDS before March-2011 and even upto Sept-2011. Suddenly when he checked my 26AS online, he came to know that bank has deducted 10% TDS i.e. Rs.2050 and deposited into Govt Account on 13-09-2011.

On asking, the bank issued a TDS certificate dated 30-04-2011 but without details of challans and date of deposit of tax into govt account. I think this is not a proper TDS certificate.

Meanwhile Income Tax return was already filled by my friend on 31-07-2011 without showing TDS entry because the same was not deducted upto that date.

After receiving TDS certificate, Revised Income Tax return has been filed online on 27-09-2011. On 04-10-2011 he received email from CPC attached with intimation u/s 143(1) pertaining to the original return of income filled by my friend on 31-7-11. This intimation is dated 19-09-2011.

What should be the remedy now. Please advise after analyzing various dates involved in this matter. What steps can be taken against bank and what is process to get new intimation u/s 143(1) for revised return filed.

Thanks in advance....

Ravikumar

CA. Nitin Agrawal

CA. Nitin Agrawal (Expert)
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06 October 2011 Dear Ravi Kumar

It is certainly wrong tds certificate issued by the bank. Wonder how they can issue tds certificate at back date whose tax is paid later on.

How may ask to the bank in writing taking acknowledgement of the same & file a complaint to the IT dept & CBDT regarding the matter.

Concerned bank had made two mistake. 1st not issuing the tds certificate in proper time & 2nd issuing the wrong tds certificate at back date.

Querist : Anonymous

Querist : Anonymous (Querist)

06 October 2011 Sir,
What about income tax return REVISED filed by the assessee ?

CA. Nitin Agrawal

CA. Nitin Agrawal (Expert)
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05 March 2012 Yes you can file the revised return & claim the TDS. But that is possible only when assessment is not completed by the A.O.

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