TDS Credit AY 2011-12

TDS / TCS 1263 views 4 replies

Deepak Gupta

CA Student

15932 Points Posted on 04 February 2012

Section 143 of the Income-tax Act, 1961 – Assessment – General – Processing of returns of assessment year 2011-12 – Steps to clear backlog
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Instruction No. 01/2012 [F.NO.225/34/2011-ITA.II], dated 2-2-2012
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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:
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(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 exceedOne lac, the TDS claim may be accepted without verification.
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(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 isFive thousand or lower.
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(iii) Where there are TDS claims with invalid TAN, TDS credit for such claims are not to be allowed.
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(iv) In all other cases, TDS credit shall be allowed after due verification.

Replies (4)

Sanket

!..Live to Give..!

16532 Points Posted on 04 February 2012

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.....

CA Jeethender

Deputy manager finance

49 Points Posted on 05 February 2012

Can you explain me 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 isFive thousand or lower.

Deepak Gupta

CA Student

15932 Points Posted on 05 February 2012

Zero TDS Matching: Suppose X deducted TDS on Payment made to Y. But while submitting the TDS return he has not mentioned the PAN of Y correctly OR he has not yet filed the TDS return OR there is a mismatch in Challan details etc., then the TDS deduction details will not reflect in the online tax statement of Y i.e. 26AS (26AS is the tax credit statement in a consolidated form that captured all tax deductions, collections and advance/self-assessment taxes for a taxpayer relating to a tax year.). If Y is to receive tax credit only from X then in this case Zero TDS is matching, i.e. mismatch between TDS deducted and details submitted, as said above. Tax credit shall be allowed after verification of the reasons of mismatch so that bogus claims can be avoided.
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In case of ITR-1 and ITR-2, if TDS claim is below Rs. 5,000/- then credit MAY be allowed in full even if zero TDS is matching. But still it will require verification as it says, “May be” and not “Will be”.