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Tax deduction at source

Rohit Pandey (Student) (766 Points)

26 September 2011

A person who is liable to deduct TDS, by mistake deducts TDS in excess of prevailing rates, whether, as per provisions of Income Tax Act any penalty can be imposed on him?

Secondly, does deductee has any legal right to complain to Income tax Department for the same and seek for damages and also what is the procedure of getting refund of tax deducted in excess?

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7 Replies

C.A SHASHANK GOYAL (Chartered Accountant) (362 Points)
Replied 26 September 2011

Hi , I am of the opinion that there is no section levying the penalty for excess deduction of Tds , but now the rememdy available to you is to adjust the tds with further installment of advance tax as paid under the provision of section 208.

2 Like

CA Vishal kapoor (Partner) (320 Points)
Replied 26 September 2011

agree with shashank ..can adjust the excess amount of TDS in future deductions of TDS as well as Advance Tax.

valji (Accounts manager-MBA) (2150 Points)
Replied 26 September 2011

AGREE WITH SHASHANK

ashish gupta ( student) (1922 Points)
Replied 26 September 2011

you have to file the Income tax return to get the refund.

Mukesh Kumar Singh (CA-FINAL) (4094 Points)
Replied 27 September 2011

AGREE WITH SHASHANK

CA PRAVEEN SINGH (MANAGER ACCOUNTS) (2277 Points)
Replied 27 September 2011

FIRST... IF THERE IS A SHORT DEDUCUCTION OF TDS,THEN PROBLEM..(penalty,int etc..)

IN CASE EXCESS DEDUCTION OF TDS,NO PROBLEM...NO PENALTY,NO INTEREST...

SO THAT THERE IS NO PENAL PROVISION IN THE INCOME TAX ACT.....FOR EXCESS...

SECOND....IF THERE IS A EXCESS DEDUCTION OF TDS,THEN WE PROVIDING CERTIFICATE TO THE DEDUCTEE,WHAT WE DEDUCTED,THEY CAN TAKE REFUND,BY FOLLOWING PROCEDURE OF REFUND...

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