Processing of returns of assessment year 2011-12

SECTION 143 OF THE INCOME-TAX ACT, 1961 - ASSESSMENT - GENERAL - PROCESSING OF RETURNS OF ASSESSMENT YEAR 2011-12 - STEPS TO CLEAR BACKLOG

INSTRUCTION NO. 01/2012 [F.NO.225/34/2011-ITA.II], DATED 2-2-2012

 

The issue of processing of returns for the Asst. Year 2011-12 and giving credit for TDS has been considered by the Board. In order to clear backlog of returns, the following decisions have been taken:

(i)  In all returns (ITR-1 to ITR-6), where the difference between the TDS claim and matching TDS amount reported in AS-26 data does not exceed Rs. One lac, the TDS claim may be accepted without verification.

(ii)  Where there is zero TDS matching, TDS credit shall be allowed only after due verification. However, in case of returns of ITR-1 and ITR-2, credit may be allowed in full, even if there is zero matching, if the total TDS claimed is Rs. Five thousand or lower.

(iii)  Where there are TDS claims with invalid TAN, TDS credit for such claims are not to be allowed.

(iv)  In all other cases, TDS credit shall be allowed after due verification.

Replies (3)

Nice step teken by the Dept. Generally the problem arises due to mismatch of TDS between 26AS and actual TDS...

So this step will be welcomable.....

Thankx for the Info.....

 

The circular will create more problems to most of the assessees in future.

 

The refunds for AY 2010-11 and AY 2011-12 are being adjusted for unknown demands  of past AYs without  confirming with the  Assessees. 

I have a  case in which demand of AY 2007-08 has been recovered twice from the Bank Account of assessee.   

More interestingly, the demand is still not cleared. The status shows that it is still pending. 

It seems that the department will follow such tactics in the coming years also.  

The circular shows the inefficiency of the Department. At the first sight it looks assessee friendly , but actually it is not going to be so.

  

Agreed with my friend Shri Paras Bafna.

.

In one of the case; the department has adjusted some demand of A.Y. 2001-02 while issuing refund of A.Y. 2009-10. (surprisingly at that time; no computerization was existed).

.

In one of the case; the department has asked the documents of A.Y.2000-01 from the assessee in the matter of TDS because it itself does not maintain records at its own ( maximum 6 years records it maintains and rest of documents are destroyed  )!

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