REFUND OF TDS

Yes, he can claim the refund by Filing Return of Income U/s. 239 Clause (iii), Sub Section 2. Now it is not clear that what is the source of income of the person, just fill in the prescribed ITR form mentioning the TDS Detail.

Whether penalty U/s. 271F is applicable or not, i am not sure about this.

Law has given the time limit of 2 years to file the ROI as belated return in section 139(4). Here assessee can obviously claim the refund of previous year ended 31.03.2008 by filing the ROI at anytime before 31.03.2010.

And also assessing has the power to levy the penalty u/s 271F, but he cannot refuse to give the refund.

O.k and if the A.O leives the penalty, it would be Rs. 5000/-, so only opt for filing return if the refund is more than that.