TDS deposited in wrong TAN through net banking

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This query is : Resolved

Muneer Ahamed (Querist)

27 September 2009 A Company deposited TDS amount through net banking in a sister companies TAN number. Amount is also considerably big. Can we claim this amount to that companies PAN No?, Is there any better alternative - Please Suggest

CA SANJAY MUKHERJEE

CA SANJAY MUKHERJEE (Expert)

27 September 2009 It would not be a big problem if the sister company( in whose TAN)tds deposited has also own TDS to deposit in current or future months to the tune of matching your deposited amount.

In that case you can take your money from ypur sister company by depositing part of his TDS as yours and accounting can be taken care of by passing Inter company entries.

If the sister company does not have TDS then the recourse is

9. REFUND OF TAX WRONGLY DEPOSITED:

Refund of excess TDS paid by the payer can be claimed by applying to ITO (TDS) as per Circular No.285 dated 21.10.1980.

It is possible in a case where tax has been wrongly deposited U?S 195, then an appeal can be preferred to CIT (A) U/s 248 for declaration that the person is not liable to make such deduction and refund can be granted by CIT (A). (Tata Engineering & Locomotive Ltd. Case (2005) 921ITD 111 (Mum)

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