Tax refund witheld - suggestion requested!

Please contact the IT call centre and raise a ticket with your concern. Dont hold the current year filing

First of all sending acknowledgement late doesnt validate your return. That too after 2 years. If a demand notice has been sent and the tds credit is reflecting in 26as please file for rectification u/s 154. I donot know how much long the transfer of files from one jurisdicion to another would take. But as far as current return pls dont wothold pls file the return.

@ Karthik,

I have been out of the jurisdiction for a very long time and you'll have to remember that the facility of online rectification was launched very late. As I mentioned, I've already done the online rectification of the outstanding tax demand with proof such as "26 AS" , copy of original filed ITR + Ack receipt screenshot with reference number from the website but apparently after 9 months the IT department hasn't got the time to address the rectification request. That is why I'm looking for the ways to escalate this.

 

Regards

Have you claimed refund? If yes then kindly write a letter to the ao itself asking for reasons for delayed payment of refun. Yes you can change jurisdiction but i donot know how long it will take. Steps to be taken are simple. First check whether your itr is validly accepted. An acknowledgement stating ack recvd late is per se valid acknowledged receipt of itr is to be checked. Then for the years refund is due pls claim the refund in prescribed form and pls donot withhold any filing of returns. Argument that online rectification came later is not valid. Rectification could have been done offline too. It is power given by statute. Kindly write letter to ao asking why demand has not been adjusted against tds and why refund is getting delayed. The letter itself is an escalation. If no reply is coming regarding refusal or grant of refund then you can escalate to concerened dcit or cit. If reply comes for refusal of refund then appeal or revisonal measures can be taken.

Correct me wherever I m wrong and also clarify on the points mentioned below. Please clarify the points that I mention here:

1. For AY 2008-09, you had a tax liability of 6500 which was paid in the return filed itself, I.e. S.A Tax. Is it the same thing that you mean in pt 1 and 2 collectively. 

What do you mean by squared off to 0. Please elaborate pt 1 and 2.

2. If the itrv is not signed and submitted to CPC, Bangalore within the prescribed time then the same becomes invalid and it is presumed as if the return is not filed your return. And hence you did not receive any intimation regarding your return for the said ay. 

3. How do you know that refund ~ 44k has been withheld? Did you file the return for ay 2014-15 in order to claim refund for that year?

4. Please elaborate more wrt your pt 5 as I m not able to understand it properly.

5. Respond to demand disagree and provide your payment details of the tax paid to at 2008-09. 

6. Wrt your Q2 I don't feel the need to go for transferring the jurisdiction

7. Please file return for AY 2015-16 at the earliest. There is no need to fear that refunds will be withheld. By delaying the filing of returns, you are automatically delaying refunds on its own motion. So get the return filed at the earliest

 

1] The date of sending ITR-v was xtended upto  31 dec2010. if you have send within that then Ok.

2) You have got a  demand notice of 6.5k. That means ur return as been assesed. If the TDS return was recified by the party - and tax credits are seen in 26AS you should have filed rectified return u/s154 only if you have claimed the TDS. If you have not claimed it then let them take tax with interest u/s 220(2)  from refund of AY2011-12.  

3) while filing AY 2015-16  you can claim - unclaimed TDS of 6.5k. But this amt should be added to the income also.   From AY 2014-15 - unclaimed TDS column has been added along with FY. [not AY remember ] and amt. 

4] Please appoint a good CA for doing your work.  There are many people like you - who are on constant move and have very little time to look into accounts.  

@ S. Shiroor:

How did you conclude that the said tax is tds.? And why is interest required to be paid when tax is already paid on it. It is either tax credits are not taken or there is mismatch.

And if it is tds also, then tax has already been paid and income would also have been considered for that year, then why there is a need to disclose that income again here. Please elaborate your suggestion as it is not clear to me

@ Rinkal

1) S.no1 mentions  "TDS  deducted from Co" and Biz travels

2) If his accounting is cash based then recipts in bank + Corresponding TDS amt is his gross receipts. If TDS is left out that means he has not taken that amt in income.

3) if he has not claimed TDS of 6.5k there is a shortfall of tax for that year and as per sec 245 taxman can claim it with Int u/s  234A B C and sec 220(2) from AY 2011-2012 refund..

4) If TDS is not claimed in 2008-09. he cannot claim u/s154 he  has to claim u/s 139(5) by filing revised return which he cannot do now.

5) If s.no 4 is true and if his accounting is not mercantile then he has to claim 6.5k TDS in 2015-16. by taking TDS amt only on income side and on tax credit side.

6) exactly same thing has happened to me for AY 2008-09, 09-10 and  14-15. 

   Some tax credits [TDS]  appeared in 26AS after assesment.   AY 08- 09 and AY09-10 has SA 400 head from refunds of AY 2010-11 AY11-12 AY12-13. Which I am claiming in rectification .

 

@ S. Shiroor: 

Thanks for sharing your view. I got to know that even that can be a possibility

Originally posted by : justacommonman
	Assessee filed tax return in AY2008-09 via third party but due to business travels wasn't able to send the signed ITR-V to Bangalore CPC on time. After TDS deducted by company, a total tax liability of 6.5K was found to be squared off to 0 as a result of assessee's tax filing for the year. i.e. No tax / refund.

 What I can understand from the said quote is that third party has filed the return meaning he has not file the itr, someone else has filed his itr and due to business travels, he did not sign the itrv. And regarding tds point, what I understand is there was some tds and some other tax which has been paid as sa tax.

Clarification regarding the point can only be provided by justacommonman.

Even if your point is considered regarding tds then what I understand is that income belonged to ay 2008-09 and was claimed. The reason behind saying that it is claimed is that he mentions that liability squared to 0.

@ justacommonman:

Please clarify the points at the earliest as it creates confusion amongst members here.

 

@ rcommon Man

Nothing gets squared off in Income tax dept unless you apply for rectification.

After Tax credits are updated in 26AS -you cannot sit quiet and expect IT dept to do it 

or expect that things will gets squared on its own . it is not cash credit account.

My demand for AY 2008-09 was 16k -and  AY 2009 -10  was 83k even though i had TDS updated  amt to 2.36Lk[total] they kept on taking refunds from 2010-11 11-12 and 12-13 without even telling me. Int amt is around 30k. u/s 234abc and 220(2). all of which i applied for refund  now.  

Dear All,

Sorry for the late response due to the festival leaves.

Answering queries related to confusions.

1. in AY 2008-09 I couldn't submit my tax savings proofs to my employer on time because I was on a short term travel. Since the employer didn't get proofs, they thought I haven't done any 80C/80D etc savings and therefore as per Form 16A I was supposed to pay a tax on my income amounting to INR 6.5K. However, since I'd actually done savings etc, I wasn't required to pay the tax owing to deductions which were applied while filing the Income tax return via ITR-1. The filing was done proporely with INR 0 tax liability and the TP gave me the ITR-V to sign and mailback to CPC. Here is where the problems started:

• I couldn't mail the signed ITR-V to CPC on time.
• The IT department probably considered the return as not filed and considering that as per Form 16A I was supposed to be paying INR 6.5 K tax, considered the same as outstanding tax demand.
• I received an outstanding tax demand intimation in AY2011-12. I figured that not sending the ITR-V to CPC must have been the case. After I sent the ITR-V to CPC, I could on the https://incometaxindiaefiling.gov.in that the ITR-V status has been shown as delayed received with the receipt number. I thought that that was it and now the outstanding tax demand would be automatically satisfied and that is it. In those days, there was no outstanding tax demand section on https://incometaxindiaefiling.gov.in as far as I remember. Since I didn't receive any other notification, it probably helped to convince me that everything was done from my side.
• But as I see now, that was not the case since now if I go to https://incometaxindiaefiling.gov.in, I can see outstanding tax demand in the appropriate section. As I mentioned earlier, I've responded to the same on the website itself as per the procedure stated here -> https://blog.cleartax.in/how-to-respond-to-a-demand-notice-from-income-tax-department/. This part was done in January 2015 (this year) but even after 10 months, the IT department is sleeping.
• Meanwhile, for AY2014-15, I was supposed to receive a tax refund of INR 44K the status of which on the https://incometaxindiaefiling.gov.in website was shown as "Refund witheld due to outstanding tax demand".

Hope i've clarified all the doubts now. I've tried contacting the call center but they are useless as they can't give the AO contact details (Phone number etc) so that I can talk and explain to my AO. They say to raise a ticket on the website itself for the same issue. So far, even after raising two separate tickets I haven't received a satisfactory response. The IT department made great strides in making returns process electronic and quick but has completely failed as far as support or resolution of issues is concerned.

I was hoping if somebody could give me the postal address of someone of authority in Bangalore IT department to whom the matter could be escalated. I could then write the whole details of the case, along with all the proper documents, annexures etc and send a registered post to the person and hope that in the next 3-4 months the issue could be resolved. Maybe someone can help !?

1) What you are saying now is in complete contrast to what you said earlier. 

   First you said biz travel and co deducted TDS. Now you are saying you are salaried personand u/s 80C/80D u have made investments.

2) No body can withhold your refunds. They must have send you a notice u/s 245that refunds from AY 2011-12  will be sent to AY 2008-09 to make up for short fall.

3) what was your address written in AY 2008-09 and in AY2011-12 in ITR. What was ur email ID written in AY 2008-09 and in AY2011-12 in u ITR.  Please check  snail mail and emails whether you have got any intimation.  If there is a tax demand from previous year you should go into your efiling site --> accounts-->  send request for Intimation u/s 143(1). 

4) After receiving intimation if chapter VI have been claimed in ITR and not taken by CPC then just goto efiling --> rectificarion--> reprocess the case. 

5) most probably the case may be sent to Jurisdicton AO- if not it will be reprocessed to Nil tax.

6) If sent to AO You can submit Chapter VI deductions xerox copies to ur  AO.  

So first thing is send for request for intimation u/s143(1)

 

Originally posted by : S. Shiroor
	5) most probably the case may be sent to Jurisdicton AO- if not it will be reprocessed to Nil tax. 6) If sent to AO You can submit Chapter VI deductions xerox copies to ur  AO.   So first thing is send for request for intimation u/s143(1)

Sir,

This is exactly that I'm expecting. Do you know of any way to actually get in touch with jurisdictional AO to speed things up. Plelase remember that basically the problem here is that I'm in Delhi NCR and the AO is in Bangalore ward. As mentioned earlier, I've already done everything that you've mentioned in terms of filing of rectification etc.

Regards

If you have applied for Intimation u/s 143(1) you will get it in 5 to 8 days.

See whether chapter VIA deductions is taken by them.

Also check the assesment year of demand - it amy be of some other year.

Did you get AY2009-10 to  2014-15 intimation u/s 143(1)