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TDS refund

Laxman (Self) (29 Points)

03 August 2020

TDS has been deducted u/s 206AA at 20% due to non-submission of PAN during FY 2020-21. I have now taken PAN. Not sure whether deductor will agree for revision of TDS return. Is there any way to claim refund of this 20% deduction, through ITR or otherwise?

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4 Replies

jacinthamary (accountant) (888 Points)
Replied 03 August 2020

File your income tax return and claim the excess amount as refund.

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CA Raj Doshi (Practising CA) (8944 Points)
Replied 04 August 2020

If deductor is anyone other than bank, then you can submit the PAN. Tell your deductor to file the TDS return with 20% TDS against your PAN for the relevant quarter. Thereafter he can deduct at normal rate.

Banks generally have systems in place. So not sure if they will do such revision.

You can get the refund (to be precise "credit")of TDS only when you file your return by 31st JULY 2021(next year). There is no other way to claim TDS credit.

In case,the person has deducted only in July 2020 or thereafter, you can ask him to update the PAN in his records and deduct from you as well as pay to the government - the actual rate instead of 20%.

Regards
CA. Raj Doshi
R C D & Co.
Chartered Accountants

Laxman (Self) (29 Points)
Replied 04 August 2020

Thank you Sh. Doshi ji. Your reply is to the point and satisfying.

jacinthamary (accountant) (888 Points)
Replied 04 August 2020

But the deductor is govt then there is no way of correcting the TDS in this case. Only way is to get refund by filing IT returns. This is applicable even the deduction is done upto June 2020.