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Refund of TDS

amit jain (Chartered Accountant) (532 Points)

28 April 2010

One of our clients had tax deducted by a Company. But after filing of return he came to know from income tax department that no tax is deposited under his pan. so can anyone tell me what procedure to be adopted against the company?

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3 Replies

Amir (Learner) (4016 Points)
Replied 28 April 2010

Dear Amit,

If the deductor is ready to either deposit the amount of TDS or refund the amount to the deductee then there is no issue at all....since return can be revised once TDS certificate is received from the Deductor company......

However, if company is not ready to either refund or deposit the amount then ur client can take a breath of comfort once he convince his AO that though TDS has not been deposited by the deductor but it was deducted.

Sec 205 - Where tax is deductible at the source under the foregoing provisions of this Chapter, the assessee shall not be called upon to pay the tax himself to the extent to which tax has been deducted from that income.

Demand cannot be enforced on assessee if tax deducted at source is not remitted to Government - From language of section 205, it is clear that once tax is deducted at source, same cannot be levied once again on assessee who has suffered deduction; once it is established that tax has been deducted at source from salary of employee, bar under section 205 comes into operation and it is immaterial as to whether TDS has been paid to Central Government or not - Yashpal Sahni v. Rekha Hajarnavis, Asstt. CIT [2007]

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sudhir rawal (B.COM/PCC/ARTICLE/'O'LEVEL) (314 Points)
Replied 28 April 2010

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thanks amir

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(Guest)

sec 205-Where tax is deductible at the source under, the assessee shall not be called upon to pay the tax himself to the extent to which tax has been deducted from that income