Friends,
If any case deductor has deducted more TDS from its employees salary or payment made to any other agency and deposited the same with the Income Tax Department can now claim Refund of excess deposit of TDS. Income Tax Act prior to Asst Year 2010-11 had no express provision of processing of TDS returns , as it has for income tax return. There was also no express provision under I T Act for refund of excess TDS deposited. However, section 200A of the I T Act introduced from 01/04/2010 has brought in very much required amendment. It not only sets in motion a process of prima facie assessment of TDS retun (read statement) . The provision is as under :-
200A. (1) Where a statement of tax deduction at source has been made by a person deducting any sum (hereafter referred to in this section as deductor) under section 200, such statement shall be processed in the following manner, namely:—
(a) the sums deductible under this Chapter shall be computed after making the following adjustments, namely:—
(i) any arithmetical error in the statement; or
(ii) an incorrect claim, apparent from any information in the statement;
(b) the interest, if any, shall be computed on the basis of the sums deductible as computed in the statement;
(c) the sum payable by, or the amount of refund due to, the deductor shall be determined after adjustment of amount computed under clause (b) against any amount paid under section 200 and section 201, and any amount paid otherwise by way of tax or interest;
(d) an intimation shall be prepared or generated and sent to the deductor specifying the sum determined to be payable by, or the amount of refund due to, him under clause (c); and
(e) the amount of refund due to the deductor in pursuance of the determination under clause (c) shall be granted to the deductor :
Provided that no intimation under this sub-section shall be sent after the expiry of one year from the end of the financial year in which the statement is filed.
