TDS credit not claimed but income reported

Save Share

This query is : Resolved

Quick Summary

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)
Follow

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)
Follow

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.

Message likes : 1 times

Payal Banerjee

Payal Banerjee (Querist)
Follow

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)
Follow

11 June 2023 No, as per the rules.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now