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Defective return u/s 139 (9) for excess deductions of TDS by deductor

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Pradeep Kumar Sarangi

Account Executive

96 Points Posted on 23 February 2024

Dear Experts,

The question is that, how to correct a defective return u/s 139(9) in case where the TDS has been deducted twice by the deductor ( i.e. on advance payment and invoice credit) ? The gross receipts as per AIS or Form 26AS have not matched with the actual amount which is reported by the assessee in the ITR. The amount of TDS is more than the Gross Receipts so that the department has denied to get any refund for excess deductions.
please assist what is the correct procedure to overcome in this situation.

Thanks
Pradeep

Replies (4)

Quick Summary

This discussion addresses how to rectify a defective tax return under section 139(9) when the deductor has incorrectly deducted Tax Deducted at Source (TDS) twice. This often occurs when TDS is applied to both advance payments and the final invoice credit, leading to discrepancies between reported income and TDS amounts in Form 26AS or AIS. The core issue is that the TDS deducted exceeds the gross receipts, preventing a refund. Solutions explored include carrying forward TDS related to advances and claiming refunds for invoice-based TDS, or communicating with the deductor to revise their TDS return to ensure TDS is deducted only once per transaction.

Ritesh Bijlani

88 Points Posted on 24 February 2024

In TDS Section -- There is an option for carried forward of tds related to advances. So in Current Year claim TDS Refund against which invoice credit are declared.

Pradeep Kumar Sarangi

Account Executive

96 Points Posted on 24 February 2024

Sir, can there be any possibilities to revise the TDS return by the deductor to tally the amount of Gross Receipts and settle the excess deductions for refund. Moreover if it has been done by the deductor, can the deductor get noticed by the CPC for excess deductions against the slab rates.

pls explore.

Ritesh Bijlani

88 Points Posted on 24 February 2024

If invoice no.A -- Tds is deducted against Invoice and Invoice no.B is not raised still by you then TDS is deducted against Advances by deductor. In this case you have to follow mercantile system by claiming refund of Tds in current year related to Tds against Invoices and carried forward tds related to advances.
If Invoice no.A -- Invoice is raised and tds is deducted on Invoice and tds is deducted on advance also related to this Invoice then you have to communicate with deductor for revising the TDS return and deduct tds once only in single transaction not twice.

In short deduction -- Notice is received by deductor not in Excess Deduction.