Refund of tds

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Radhakrishnan K.V. (Querist)
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29 July 2015 Dear All,
My Client, a Trust, recently got exemption u/s 10(23AAA) for the AYs 2012-13, 2013-14 and 2014-15.
Earlier, Banks affected TDS on the interest on investment of the Trust, u/s 194A(1) and paid to the Government for these periods.
Which is the easiest way to get refund of the amount so remitted?
Shall we persuade the deductor to apply in form 26B or is there any alternative solution.

Taxguy

Taxguy (Expert)
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30 July 2015 For AY2013-14 and AY2014-15, you can file a ITR 7 and get the refund.

Radhakrishnan K.V.

Radhakrishnan K.V. (Querist)
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31 July 2015 Thank you Taxguy.
Is it not that a Trust/Fund exempted u/s 10(23AAA) need not file ITR. In such case is there any alternative to claim refund?

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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20 July 2025 Great question! Here’s the scoop on trusts/funds exempt under Section 10(23AAA) and refund claims:

1. Do trusts/funds exempt under Section 10(23AAA) need to file ITR?
Section 10(23AAA) provides exemption to certain funds or trusts set up for charitable or religious purposes.
Generally, if the trust/fund’s income is fully exempt and there is no taxable income, filing a return of income (ITR) is not mandatory.
However, if the trust/fund has taxable income or if there is TDS deducted/refund claim, filing ITR is usually necessary.
2. If no ITR is filed, can refund be claimed?
The Income Tax Department releases refunds only against a filed return.
So, if TDS is deducted on income of the trust/fund (even if exempt), and no ITR is filed, refund cannot be processed.
Filing an ITR is the usual route to claim refunds.
3. Alternative or exceptions?
There is no alternate formal procedure to claim refund other than filing the return.
Even exempt trusts/funds are advised to file Nil Return to claim refund of TDS deducted, or in case of excess tax payments.
Without filing the return, refund will remain pending or rejected.

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