Tds wrongly deducted and remitted

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This query is : Resolved

CA NITESH G. SWAMI (Querist)

21 May 2013 We have deducted TDS on the interest paid on FDR to the Co-Operative Bank and also remitted to Income tax department.

However later on we understood that as per the provision of section 194(A) of Income tax Act 1961 that any amount paid to the banking company or co-operative society engaged in the business of the banking company provisions of clause no. 1 of section 194(A) is not applicable.

Kindly provide us the procedure/clarification for claming the TDS deducted wrongly and remitted to the Income Tax Department.

Your early feedback will be highly appreciated and thankful

Regards
CA Nitesh Swami

Radhakrishnan K.V.

Radhakrishnan K.V. (Expert)

21 May 2013 As per sec.194A(3)(iii) no TDS is required from the interest paid/credited to a Co-operative society. If the society is going for litigation you may be bound to pay back the amount to the society. Alternatively the co-operative society can claim refund from IT Department.

CA NITESH G. SWAMI

CA NITESH G. SWAMI (Querist)

21 May 2013 sir,

Can we (deductor) claim a refund from the IT , if yes kindly provide us the procedure.

your early feedback will be highly appreciated and thankful.

Regards,
CA Nitesh Swami

Tushar Desai

Tushar Desai (Expert)

22 May 2013 Dear Mr Nitesh Swami,

You have deducted and paid TDS. Have you filed TDS Return for this transaction?

If you have already filed TDS Return, the first step for you is to revise your return. And then, tell the Society to claim Refund.

Even if you have not filed TDS Return so far, the Society can claim Refund. You cannot claim refund on behalf of Society in any of the two cases.

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