Tds deducted by party while deposition of payment

TDS 244 views 5 replies

Kam24

teacher

6 Points Joined May 2017

Hi i want to know if the party has made payment to us & deducted TDS there on while making payment to us. Afterwards, the payment refunded i.e. money received refunded but except TDS. Now the party demands for refund of TDS amount too and it states that it has deposited TDS with Income Tax Department which is even showing in our 26 AS, will it be refunded or not??? the party can adjust TDS with following years TDS or not?? Please reply ASAP its urgent. question also arises that we have not received TDS amt..so can we refund TDS amt or not??

Replies (5)

PRABIR PAUL

*****Accountant***** Never insult to a

1448 Points Joined January 2017

Let's start with an example:-

Total amount payble Rs. 10,000/-

TDS Deducted 1,000/-

Amount paid 9,000/-

If you refunded that amount(9,000/-) i.e. there no income has been generated. So there is no question for tds.

You can't get the amount of TDS. If this amount is showing in 26AS along with the received Bill amount(10,000/-) then you should inform to deductor to file a revised tds return or take the tds amount in any other parties or any other places.

Kam24

teacher

6 Points Joined May 2017

we received Rs 9,000/- and 1,000/- TDS deducted by the party and party deposited Rs. 1,000/- TDS to INcome Tax department....we refunded Rs. 9,000/- now the party demanded to refund Rs. 1,000/- also. please advise.

rocky

accountant

953 Points Joined January 2014

if your total income is below taxable limit. then return rs 1000 cash to the party .
but if your income is taxable
then tell the party to revise return and adjust any other party in that return.

PRABIR PAUL

*****Accountant***** Never insult to a

1448 Points Joined January 2017

You are not liable to give refund back the tds amount of Rs. 1,000/- as well as the amount of Rs. 10,000/- should not be shown in your 26as as this is not your income or receipts whatever.

The deductor is liable to apply for tds refund in traces or adjust this amount of Rs. 1,000/- in any other places.