Refund of tds excess deposited
This query is : Resolved
06 June 2012
Can any one help me out on below problem.
Where I supposed to file an application for refund of excess deposit of TDS under section 195?
please quote provisions/section in support of your answer.
Where I supposed to file an application for refund of excess deposit of TDS under section 195?
please quote provisions/section in support of your answer.
06 June 2012
Section 200A of the Income-tax Act, 1961 - Deduction of tax at source - Processing of statement of tax deducted at source - Procedure for regulating refund of excess amount of TDS deducted and/or paid
CIRCULAR NO. 2/2011 [F.NO. 385/25/2010-IT(B)], DATED 27-4-2011
The procedure for regulating refund of amount paid by the deductor in excess of the tax deducted at source (TDS) and/or deductible is governed by Board circular No. 285, dated 21-10-1980.
2. Subsequent to issue of circular No. 285, new sections have been inserted under Chapter XVII-B of the Income-tax Act, 1961. References have been received by the Board regarding inclusion of these sections also for the purpose of issue of refund of excess amount of the TDS deducted/deductible.
3. In consideration of the above and in supersession of the circular No. 285, dated 21-10-1980, the Board prescribes the following procedure for regulating refund of amount paid in excess of tax deducted and/or deductible in respect of TDS on residents covered under sections 192 to 194LA of the Income-tax Act, 1961. This circular will not be applicable to TDS on non-residents falling under sections 192, 194E and 195 which are covered by circular No. 7/2007 issued by the Board.
4. The excess payment to be refunded would be the difference between:
(i) the actual payment made by the deductor to the credit of the Central Government; and
(ii) the tax deductible at source.
4.1 In case such excess payment is discovered by the deductor during the financial year concerned, the present system permits credit of the excess payment in the quarterly statement of TDS of the next quarter during the financial year.
4.2 In case, the detection of such excess amount is made beyond the financial year concerned, such claim can be made to the Assessing Officer (TDS) concerned. However no claim of refund can be made after two years from the end of financial year in which tax was deductible at source.
5. However, to avoid double claim of TDS by the deductor as well as by the deductee, the following safeguards must be exercised by the Assessing Officer concerned:
5.1 The applicant deductor shall establish before the Assessing Officer that:
(i) it is a case of genuine error and that the error had occurred inadvertently;
(ii) that the TDS certificate for the refund amount requested has not been issued to the deductee(s); and
(iii) that the credit for the excess amount has not been claimed by the deductee(s) in the return of income or the deductee(s) undertakes not to claim such credit.
5.2 Prior administrative approval of the Additional Commissioner or the Commissioner (TDS) concerned shall be obtained, depending upon the quantum of refund claimed in excess of Rupees One Lakh and Rupees Ten Lakh respectively.
5.3 After meeting any existing tax liability of the deductor, the balance amount may be refunded to the deductor.
6. In view of provisions of section 200A of the Income-tax Act prescribing processing of statement of TDS and issue of refund with effect from 1-4-2010, this circular will be applicable for claim of refunds for the period upto 31-3-2010.
CIRCULAR NO. 2/2011 [F.NO. 385/25/2010-IT(B)], DATED 27-4-2011
The procedure for regulating refund of amount paid by the deductor in excess of the tax deducted at source (TDS) and/or deductible is governed by Board circular No. 285, dated 21-10-1980.
2. Subsequent to issue of circular No. 285, new sections have been inserted under Chapter XVII-B of the Income-tax Act, 1961. References have been received by the Board regarding inclusion of these sections also for the purpose of issue of refund of excess amount of the TDS deducted/deductible.
3. In consideration of the above and in supersession of the circular No. 285, dated 21-10-1980, the Board prescribes the following procedure for regulating refund of amount paid in excess of tax deducted and/or deductible in respect of TDS on residents covered under sections 192 to 194LA of the Income-tax Act, 1961. This circular will not be applicable to TDS on non-residents falling under sections 192, 194E and 195 which are covered by circular No. 7/2007 issued by the Board.
4. The excess payment to be refunded would be the difference between:
(i) the actual payment made by the deductor to the credit of the Central Government; and
(ii) the tax deductible at source.
4.1 In case such excess payment is discovered by the deductor during the financial year concerned, the present system permits credit of the excess payment in the quarterly statement of TDS of the next quarter during the financial year.
4.2 In case, the detection of such excess amount is made beyond the financial year concerned, such claim can be made to the Assessing Officer (TDS) concerned. However no claim of refund can be made after two years from the end of financial year in which tax was deductible at source.
5. However, to avoid double claim of TDS by the deductor as well as by the deductee, the following safeguards must be exercised by the Assessing Officer concerned:
5.1 The applicant deductor shall establish before the Assessing Officer that:
(i) it is a case of genuine error and that the error had occurred inadvertently;
(ii) that the TDS certificate for the refund amount requested has not been issued to the deductee(s); and
(iii) that the credit for the excess amount has not been claimed by the deductee(s) in the return of income or the deductee(s) undertakes not to claim such credit.
5.2 Prior administrative approval of the Additional Commissioner or the Commissioner (TDS) concerned shall be obtained, depending upon the quantum of refund claimed in excess of Rupees One Lakh and Rupees Ten Lakh respectively.
5.3 After meeting any existing tax liability of the deductor, the balance amount may be refunded to the deductor.
6. In view of provisions of section 200A of the Income-tax Act prescribing processing of statement of TDS and issue of refund with effect from 1-4-2010, this circular will be applicable for claim of refunds for the period upto 31-3-2010.
06 June 2012
who is the AO i mean AO (TDS) or AO as per normal provisions of Income Tax Act, 1961.
20 July 2025
Great question! Here's a detailed explanation about refund of excess TDS deposited under section 195 and who the Assessing Officer (AO) is for claiming such refund:
1. Where to file application for refund of excess TDS under section 195?
As per CBDT Circular No. 2/2011 dated 27-4-2011, excess TDS deposited can be claimed as refund from the Assessing Officer (TDS) who is the TDS Deducting Officer under Chapter XVII-B of the Income Tax Act.
The claim is to be made to the AO (TDS) and not to the regular AO under normal provisions of the Income Tax Act.
2. Who is AO (TDS)?
The AO (TDS) is the officer responsible for TDS compliance and administration under Chapter XVII-B. This officer processes TDS statements, issues TDS certificates, and handles TDS refunds.
The AO (TDS) is generally designated at the jurisdiction of the deductor (the entity who deducted and deposited the TDS).
3. Procedure & Conditions for Refund
The deductor must establish to the AO (TDS):
The excess deduction/deposit is due to genuine error (inadvertent mistake).
The TDS certificate for the refund amount has not been issued to the deductee.
The deductee has not claimed and will not claim TDS credit for that excess amount in their income tax return.
If the excess payment is discovered within the financial year, it can be adjusted against the next quarter's TDS.
If discovered after the financial year, refund claim must be made within 2 years from the end of the financial year in which the tax was deductible.
4. Section 200A: Role
Section 200A lays down the procedure for processing TDS statements and regulating refunds.
Refunds are issued after verifying the above conditions by the AO (TDS).
5. Approval for large refunds
Refunds above Rs. 1 lakh require approval of Additional Commissioner (TDS).
Refunds above Rs. 10 lakh require approval of Commissioner (TDS).
1. Where to file application for refund of excess TDS under section 195?
As per CBDT Circular No. 2/2011 dated 27-4-2011, excess TDS deposited can be claimed as refund from the Assessing Officer (TDS) who is the TDS Deducting Officer under Chapter XVII-B of the Income Tax Act.
The claim is to be made to the AO (TDS) and not to the regular AO under normal provisions of the Income Tax Act.
2. Who is AO (TDS)?
The AO (TDS) is the officer responsible for TDS compliance and administration under Chapter XVII-B. This officer processes TDS statements, issues TDS certificates, and handles TDS refunds.
The AO (TDS) is generally designated at the jurisdiction of the deductor (the entity who deducted and deposited the TDS).
3. Procedure & Conditions for Refund
The deductor must establish to the AO (TDS):
The excess deduction/deposit is due to genuine error (inadvertent mistake).
The TDS certificate for the refund amount has not been issued to the deductee.
The deductee has not claimed and will not claim TDS credit for that excess amount in their income tax return.
If the excess payment is discovered within the financial year, it can be adjusted against the next quarter's TDS.
If discovered after the financial year, refund claim must be made within 2 years from the end of the financial year in which the tax was deductible.
4. Section 200A: Role
Section 200A lays down the procedure for processing TDS statements and regulating refunds.
Refunds are issued after verifying the above conditions by the AO (TDS).
5. Approval for large refunds
Refunds above Rs. 1 lakh require approval of Additional Commissioner (TDS).
Refunds above Rs. 10 lakh require approval of Commissioner (TDS).
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