Refund of tds
This query is : Resolved
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.
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.
30 July 2015
For AY2013-14 and AY2014-15, you can file a ITR 7 and get the refund.
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?
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?
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.
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.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Scrutiny and reopening of past returns
- Pass word to open justification report for Q1 for FY 2026-27
- PPF interest-As Exempt Income disclosure
- Section 194JA & JB Income which ITR Form to use
- Type of Capital Gain
- Booth for sales promotion
- F & O PROFIT REPORTING FOR AY 2026-27
- Grand in aid
- Accounting with Claude
- TDS on Rent received on redevelopment of building
- Tax on Deemed Capital Gain
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
