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Errouneous it refund claim

13 October 2016

There was an error in IT Return for the current AY filed by me(my agent) and refund was claimed which has since been credited in my account. However, I later found that the refund claimed is not eligible. In fact I have to pay an additional tax.

How can this be recified? Means I have to return the refund amount plus an additional tax to be paid. (Although a small amount)

Please Help.

Regards

Utpal

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8 Replies

Kajal Jain (Freelancer-Chartered Accountant) (551 Points)
Replied 13 October 2016

wait for the notice from the ITO .

2 Like

Vineet Goyal (Assistant Manager - Finance & Accounts) (702 Points)
Replied 13 October 2016

Try to file revised ITR and pay tax and refund amount along with interest.

Alternatively you can approach your AO with written facts on a paper asking his advice on payment.

2 Like

Utpal Kumar Dhar (13 Points)
Replied 14 October 2016

That will tantamount to making black money or cheating......

Utpal Kumar Dhar (13 Points)
Replied 14 October 2016

That is a good suggestion, I believe. But then under what section do I reconcile the payment....

Abhimanyu (CA) (316 Points)
Replied 14 October 2016

Thanks for the query Utpal,
If you wish to make good of such mistake,
Please pay Tax+Refund(erroneously refunded)+Interest on above under Self Assessement Tax ASAP, before anything else.
Then revise return, if mistake is apparent file rectification or if any technical glitch is there simply approach Jurisdictional AO with ITR, Challan, Letter detailing mistake your payment details along with a request to condone it and to guide for any further procedure required to correct the information on return filed, as it is not a big issue it would not take much time if AO is cooperative it would not need more than 2-3 visits.

Hope the above information helps you, in case of any issue please revert,

Thanks,
Abhimanyu

1 Like

Utpal Kumar Dhar (13 Points)
Replied 14 October 2016

Thanks a lot Abhimanyu; However, can u please guide me under which section do I pay : there are 2 parts; one the remaining tax(normal-10% after 20% TDS) and the refund claimed and received amount plus tax thereon.
Regards
Utpal

Abhimanyu (CA) (316 Points)
Replied 14 October 2016

Thanks for reverting Utpal,
I am very sorry but I'm having hard time recognizing that under which, you are referring to as Section, though challan is 280/Non-corp. Assesse/SATax is where I would have paid the tax at.
I am really sorry, could you please specify about what you are asking so that I could revert,

Thanks,
Abhimanyu

1 Like

Utpal Kumar Dhar (13 Points)
Replied 17 October 2016

Abhimanyu, I am grateful to you for your effort in resolving the issue. I am actually confused regarding the section meaning under challan no and under which section, e.g., 194J or so...to show the tax payable.

Well, I now understand that I need to use challan no 280. Thereafter, while submitting the revised return, where to show the tax amount?

Actually, what happened was that I received some incentive(which falls under 30% bracket) outside the salary module against which TDS @ 20% was deducted and credited while the tax return was prepared by my agent based solely on the Form-16/TDS certificate, thereby leaving that incentive outside the gross income, resulting in TDS refund.

Thanks once again

Utpal