TDS credit not claimed but income reported

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An individual filed an ITR-U for AY 21-22, reporting income as per Form 26AS but choosing not to claim the TDS credit of £1700 due to refund restrictions. They paid the late fee under Section 234F. However, it's clarified that an ITR-U should generally only be filed when there's tax payable, not simply to report income without claiming TDS. Filing an ITR-U when the original return wasn't filed and for purposes like bank loans is also not permitted under current rules.

Payal Banerjee

Payal Banerjee (Querist)
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10 June 2023 While filing of ITR-U for AY 21-22, I have taken the income as displayed in Form 26AS in my ITR but I dont want to claim the TDS deducted as refunds are not allowed while filing ITR-U. However I have paid the late fee as applicable u/s 234F of Rs. 1000. I have a TDS credit of Rs. 1700 , but i dont want to claim the credit, however I have declared the corresponding income in my ITR. Will it be the correct way to file the ITR or there may be an issue while processing the ITR-U?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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10 June 2023 In such a case no need to file ITR U.
It will not be the correct way to file ITR U.
Only in case of tax payable ITR U can be filed.
No issues in the already filed ITR.

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Payal Banerjee

Payal Banerjee (Querist)
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10 June 2023 Sir good evening. This is a follow up query. Sir kindly allow me to clarify, the original return was not filed and ITR-U is being filed as the original return was not filed and the assessee is in need of ITR for the purpose of bank loans. Can the ITR-U be filed under the said circumstances

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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11 June 2023 No, as per the rules.

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