Tax wrongly deposited which was not due
This query is : Resolved
20 May 2009
An assessee wrongly deposited TAX for himself but while rechecking he founds that his income was not liable to tax and no tax was required to be deposited by him. He has not filed any ITR then and due date has also lapsed. What can be the consequences now or can he get his money refunded?
20 May 2009
For assessment year 2008-2009 & 2009-2010 he can file the return & claim refund.
21 May 2009
I think, for A.Y 2008-09 return can be filed only with a penalty of Rs 5000/- which will be not benificial? And what if return relates to A.Y 2007-08?
26 July 2025
Here’s a clear summary of the **situation and options regarding wrongly deposited tax**:
---
### Situation:
* Tax was **deposited by mistake**, but the income was **not taxable**.
* No Income Tax Return (ITR) was filed for that year.
* The due date for filing the return has **lapsed**.
---
### What can be done now?
1. **Filing a belated return:**
* Under **Section 139(4)**, an assessee can file a **belated return** within the **assessment year** or before completion of assessment, whichever is earlier.
* For **AY 2008-09 and 2009-10**, belated returns can still be filed (depending on the current date), though late fees and penalties may apply.
2. **Claiming refund:**
* Once the belated return is filed, the assessee can **claim refund of the wrongly deposited tax**.
* The refund will be processed after the Income Tax Department completes the assessment.
3. **Penalty for late filing:**
* Under **Section 234F**, a fee up to ₹5,000 may be levied for late filing (after the due date but before 31st December).
* However, the penalty is often lower or nil if the return is filed before the end of the assessment year and income is nil or no tax liability.
4. **If beyond limitation period:**
* For very old years like **AY 2007-08 or before**, the **time limit for filing return and claiming refund is generally 3 years from the end of the relevant assessment year** (Section 139(1) read with Section 139(4) and refund claim rules).
* Beyond that, it is difficult to claim refund unless special provisions or rectification applications under Section 154 or appeals are invoked.
---
### Consequences if no action is taken:
* The wrongly deposited tax **will remain with the government**.
* No refund will be issued without a valid return and claim.
* Interest on refund may or may not be payable depending on the delay.
---
### Recommended action:
* File the **belated return immediately** for the relevant AY.
* Claim refund of the tax wrongly deposited.
* Keep proof of tax payment and correspondence.
---
If you want, I can help draft a **sample belated return claim format** or assist in the refund application process. Would you like that?
---
### Situation:
* Tax was **deposited by mistake**, but the income was **not taxable**.
* No Income Tax Return (ITR) was filed for that year.
* The due date for filing the return has **lapsed**.
---
### What can be done now?
1. **Filing a belated return:**
* Under **Section 139(4)**, an assessee can file a **belated return** within the **assessment year** or before completion of assessment, whichever is earlier.
* For **AY 2008-09 and 2009-10**, belated returns can still be filed (depending on the current date), though late fees and penalties may apply.
2. **Claiming refund:**
* Once the belated return is filed, the assessee can **claim refund of the wrongly deposited tax**.
* The refund will be processed after the Income Tax Department completes the assessment.
3. **Penalty for late filing:**
* Under **Section 234F**, a fee up to ₹5,000 may be levied for late filing (after the due date but before 31st December).
* However, the penalty is often lower or nil if the return is filed before the end of the assessment year and income is nil or no tax liability.
4. **If beyond limitation period:**
* For very old years like **AY 2007-08 or before**, the **time limit for filing return and claiming refund is generally 3 years from the end of the relevant assessment year** (Section 139(1) read with Section 139(4) and refund claim rules).
* Beyond that, it is difficult to claim refund unless special provisions or rectification applications under Section 154 or appeals are invoked.
---
### Consequences if no action is taken:
* The wrongly deposited tax **will remain with the government**.
* No refund will be issued without a valid return and claim.
* Interest on refund may or may not be payable depending on the delay.
---
### Recommended action:
* File the **belated return immediately** for the relevant AY.
* Claim refund of the tax wrongly deposited.
* Keep proof of tax payment and correspondence.
---
If you want, I can help draft a **sample belated return claim format** or assist in the refund application process. Would you like that?
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