TDS Credit return

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 October 2010 Dear Sir

A Ltd. Company is executing Construction work in a central govt organization. They had received Mobilization advance in initial stage for executing the work and deducting the advance in installment with interest in every running account bill as per works contract. Whatever TDS on the interest which was charged by the Govt. organization against recovery of advance had paid by the Co. and the same was reimbursed from the Govt. Organization by submitting Form16A during the assessment year. Now the problem is that in the year 07-08 TDS had been deposited by our client but the TDS certificate they could not able to submit the same in Finance in time and later when it is submitted in this year (10-11) they have refused to credit the return as their assessment year was already expired.

Now my question is whether this TDS which my client has deposited but not gets the refund from the organization can alternative way to get the credit of the return. Please let us inform.

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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26 October 2010 The Finance has right to refuse to accept the TDS certificate, since it is difficult to get the credit in normal assessment.

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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27 July 2025 Hey! This is a common tricky situation in TDS credit and refund cases. Here's a breakdown and what your client can consider doing:

### Situation Recap:

* Your client (A Ltd) deducted and deposited TDS on interest charged by the Govt organization (on recovery of mobilization advance).
* They submitted Form 16A and got reimbursement from Govt organization.
* But the TDS certificate was submitted late (in AY 2010-11) though the TDS was deposited in AY 2007-08.
* The Income Tax Dept is refusing to give credit since the AY 2007-08 assessment period is expired.

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### Important Points:

1. **TDS credit is allowed only in the year the TDS is actually deposited and reflected in Form 26AS** for the respective PAN.
2. If the TDS certificate was not submitted or matched with Form 26AS in the correct AY, the credit will not reflect automatically.
3. Late submission of TDS certificate to the deductee does not extend the time limit for claiming TDS credit.
4. If the TDS was deposited by your client but the corresponding credit is not reflecting, it’s usually a procedural issue with Form 26AS or mismatch in PAN/TAN.

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### Possible Remedies:

**1. File a Revised Return or Claim Refund in the Current AY:**

* If the TDS credit is not reflecting for that AY, your client can file a revised return (if within the limit) or claim the refund in the current AY by showing the TDS details.
* They need to attach proof of TDS deposit (challan), Form 16A, and correspondences.

**2. Approach Assessing Officer (AO):**

* Write a detailed letter to the AO explaining the situation with documentary proof.
* Request adjustment of TDS credit deposited against the tax liability for the relevant AY.

**3. Rectification under Section 154:**

* File an application for rectification if the TDS credit was omitted by mistake.

**4. If TDS credit is lost due to delay from Govt organization or procedural lapse:**

* Your client might have to carry the claim forward by adjusting in the next AYs' returns or try to get refund from the Govt organization if reimbursed amounts were received.

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### Key Advice:

* Always ensure timely collection and submission of TDS certificates for claiming credit.
* Follow up with the deductor to ensure the TDS return is filed properly.
* Maintain documentary proof for all TDS deposited and certificate submissions.

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If you want, I can help draft a letter to the AO or a formal application for rectification. Would that be helpful?

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