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Showing posts with label Excess Payments. Show all posts
Showing posts with label Excess Payments. Show all posts

Interest on Excess Refund granted to the Taxpayer.

At times it may so happen that the taxpayer is granted excess refund. Section 234D provides for levy of interest on excess refund granted to the taxpayer. In this part you can gain knowledge about various provisions relating to interest on excess refund granted to the taxpayer.

Manner of computation of interest under the Income-tax Act Before understanding the provisions of section 234D, it is important to understand the provisions of Rule 119A which gives the manner of computation of interest under the Income-tax Act.

As per Rule 119A, while calculating the interest payable by the taxpayer or the interest payable by the Central Government to the taxpayer under any provision of the Act:

  1. where interest is to be calculated on annual basis, the period for which such interest is to be calculated shall be rounded off to a whole month or months. For this purpose, any fraction of a month shall be ignored and the period so rounded off shall be deemed to be the period in respect of which the interest is to be calculated;
  2. where the interest is to be calculated for every month or part of a month comprised in a period, any fraction of a month shall be deemed to be a full month and the interest shall be so calculated;
  3. the amount of tax, penalty or other sum in respect of which such interest is to be calculated shall be rounded off to the nearest multiple of one hundred rupees. For this purpose any fraction of one hundred rupees shall be ignored and the amount so rounded off shall be deemed to be the amount in respect of which the interest is to be calculated.

Basic provisions
If the taxpayer has paid excess tax, then he will claim the refund of the same in his return of income and it will be refunded to him. Many times it may happen that the taxpayer is granted a refund at initial stage, i.e., at the time of intimation under section 143(1) and at a later stage (i.e., on regular assessment) the refund gets reduced. In such a case the excess refund is recovered from the taxpayer along with interest under section 234D.

Under section 234D interest is levied if any refund is granted to the taxpayer under section 143(1) and:

  1. no refund is due on regular assessment; or
  2. the amount refunded under section 143(1) exceeds the amount refundable on regular assessment.

Regular assessment generally means an assessment under section 143(3), i.e., scrutiny assessment or an assessment under section 144, i.e., best judgment assessment. 

Assessment made for first time under section 147 or section 153A shall also be treated as regular assessment. 

Rate of interest
Interest under section 234D is levied @ ½ % per month or part of the month.

Period of levy of interest
Interest is levied from the date of grant of refund under section 143(1) till the date of regular assessment.

Regular assessment means an assessment under section 143(3) or section 144. Assessment made for first time under section 147 or section 153A shall also be treated as a regular assessment. 

Amount liable for interest
Interest under section 234D is levied on the whole or the excess amount of refund (as the case may be).

Adjustment under Section 234(2)
Where, as a result of an order under section 154 or section 155 or section 250 or section 254 or section 260 or section 262 or section 263 or section 264 or an order of the Settlement Commission under sub-section (4) of section 245D, the amount of refund granted under sub-section (1) of section 143 is held to be correctly allowed, either in whole or in part, as the case may be, then, the interest chargeable, if any, under subsection (1) of Section 234 shall be reduced accordingly.

Adjust Excess TDS paid in next Coming Months.

There are many discrepancy regarding adjustment of Excess TDS deductions.  If the deductor remitted excess TDS amount from any employee under section 192, it can be adjusted under the same section in the coming month.

As per Income Tax Act for TDS Deduction under section 192(3), it is clearly provides that the deductor can enhance reduce the amount of tax to be deducted for the purpose of adjusting any excess or deficiency in previous action of deduction of tax at source. The excerpts of the said provision is given below:
“(3) The person responsible for making the payment referred to in sub-section (1) or sub-section (1A)or sub-section (2) or sub-section (2A) or sub-section (2B) may, at the time of making any deduction, increase or reduce the amount to be deducted under this section for the purpose of adjusting any excess or deficiency arising out of any previous deduction or failure to deduct during the financial year.”
Therefore, you can do the said adjustment without any hesitation.

Refund of TDS paid wrongly by Deductor/Tax Payee.


REFUND OF EXCESS TDS

Q1. Refund of Excess TDS Paid ?
Yes
one can get refund of excess tds paid/deposited. CBDT had issued ircular in April 2011 which lays down the procedure on getting tds refund prior to 1st April, 2010 and to deal with refunds after 1st April, 2010, finance act 2009 has inserted a new section 200A.

Prior to 1st April, 2010 and after 1st April, 2010:



  1. Refund of excess TDS deducted on or after 01/04/2010 (i.e 1st April, 2010)
  2. Refund of Excess TDS paid is covered under the Provisions of 200A of the Income Tax Act which is very similar to section 143(1) (deemed intimation) under which every return filed by a tax payer is processed and intimation is generated. The tax payer also gets refund, if any.
  3. The Section 200A now makes it mandatory for Income Tax Department to process every TDS return and if refund is due on such processing of TDS return, shall be sent by the department to deductor.
  4. The excess payment to be refunded would be the difference between:
  •   The actual payment made by the deductor to the credit of the Central Govt and
  • The tax deductible at source.
  1. Section 200A provides power to Income Tax Authority to adjust any arithmetical errors/mistakes/incorrect claims apparent from any information in the statement and compute actual TDS deductible.
  2. Excess TDS Refund Procedure Compute interest on based on the details provided in the statement for deductions and challans.
EXCESS PAYMENT DISCOVERED DURING FINANCIAL YEAR
  • In case such excess payment is discovered by the deductor during the financial year concerned, the present system permits credit of the excess payment in the quarterly statement of TDS of the next quarter during the financial year.
EXCESS PAYMENT DISCOVERED AFTER FINANCIAL YEAR
  • In case, the detection of such excess amount is made beyond the financial year concerned, such claim can be made to the Assessing Officer (TDS) concerned.
  • However no claim of refund can be made after two years from the end of financial year in which tax was deductible at source.
Refund of excess TDS deposited before 01/04/2010 (i.e. prior to 1st April, 2010)
  • The claim of such excess TDS is governed by CBDT Circular no 2/2011 dated 27/04/2011 which lays down following procedure for claiming refund.
SAFEGUARDS EXERCISE BY AO TO AVOID DOUBLE CLAIMS
 The applicant deductor shall establish before the AO that:
  •  It is a case of genuine error and that the error had occurred inadvertently.
  • That the TDS certificate for the refund amount requested has not been issued to the deductee(s).
  • That the credit for the excess amount has not been claimed by the deductee(s) in the return of income or the deductee(s) undertakes not to claim such credit.
GENERAL POINTS
  1. This circular covers only residents having deducted TDS under section 192 to 194LA of the Income Tax Act.
  2. Prior approval of the Additional Commissioner is required for refund up to Rs. 1 Lakh
  3. Prior approval of the Commissioner is required for refund in excess of Rs. 1 Lakhs
  4. After meeting any existing tax liability of the deductor, the balance amount may be refunded to the deductor.
  5. FORM 26B is a form for making refund electronically by deductor to IT department.

Source: www.caclubindia.com

Online Income Tax Refund Request and 5 Smart Things.


TRACES has been provide a link to apply online Income Tax Refund Request of Excess Deposit of TDS by Taxpayee or Deducted by Deductor on account of Taxpayee.  This Online Income Tax Refund Request facility recently added by TRACES though this utility is available offline via Form 26B.

For claiming of Excess Deposit of TDS which credited by Deductor from Taxpayee/TDS Deductee and filed Form 26B in time under Chapter XVII-B of the Income Tax, 1961 quick download Form 26B and claim for refund of Excess TDS.

How to apply Online?
To apply online TDS Refund Request, Login to www.tdscpc.gov.in and go to Request for Refund which is available under "Statements/Payments".  See the Following Pic.

Basic Requirements for using this facility.
Registration of Digital Signature is required to online Request for refund of TDS deposited in Excess.

Digital Signature:
Registration of Digital Signature has already been enabled on TRACES for deductors. Deductors can register their Digital Signature in PROFILE after registration

Important 5 things to know about Income Tax Refund.

Taxpayers are entitled to receiving refunds, if payable, after their returns have been processed by the Central Processing Centre in Bangalore.

The State Bank of India has been designated the banker for ensuring that refunds are paid to the bank accounts of taxpayers.

To ensure that the refund is deposited in the bank account, the assessee must provide correct bank details while filing their returns.

The Income Tax Department supports queries regarding the status of refund through the Tax Information Network (TIN) website. One can access it by providing the assessment year and PAN.

If a refund is payable, the assessee is provided the refund reference number, date of credit to the bank account, or the dispatch details of the cheque.

Download Form 26B for Offline TDS Refund Request

How to DOS Platform Software, view with Full Screen in Windows?


To Display Full Screen, DOS Platform Software in Windows XP, Vista, Windows-7 etc. The changes must be required as per following Picture.

Double Click on DOS platform Software or Run this programme/software by clicking Double

Then adopt the procedure as per following picture.

Change the value of width as per below picture.

And save by pressing OK button.

And,
then change as per the following picture

This is the procedure to change Full Screen DOS programme

Most Useful Tips and Short Cuts of MS Excel

Computer is a very part of life of human and MS Office is very useful application in office accomodation. In MS Office some small application is there along all application the Excel is very useful part. In Excel there are so many functions with the help of those one can do his job very easily and comfortably which is even impossible if someone try to do it manually. While workin in Excel we need some short cuts to do work fast. Here are some Excel Tips which could be very useful for doing job in Excel. Like as someone type some matter in Column mode but the Boss says to convert the Columns in Rows, then you don't have to panic to type the matter again in Rows mode. Just use the following tric and convert it in just seconds.

Convert Rows to Columns
You can convert rows to columns (and columns to rows) by highlighting the cells you want to switch around,clicking on Edit, Copy, selecting a new cell and then going to Edit, Paste Special… Finally, place a tick in the Transpose box on the dialog box and click on OK.

Calculate time between dates
Enter in a cell the formula =A2-A1, where A1 is the earlier date, and A2 the later one. Don’t forget to convert the target cell to number format – do this by highlighting the cell, clicking on Format, Cells…, picking on the Number tab and selecting Number from the Category: list.

Enter URLs as text, not hyperlinks
To prevent Excel from converting written Internet addresses into hyperlinks, add an apostrophe to the beginning of the address, for example ‘www.futurenet.com.'

Calculate Running Totals
Enter the numbers to be added in column A, say A1 to A5, then enter =SUM($A$1:A1) into column B. Highlight the cells beside the ones with numbers in (in our example, B1 to B5) and go to Edit, Fill, Down. This places the running total of the figures in A1 to A5 in the adjacent column.

Remove Hyper links
From your work If Excel has already converted your written URL into a hyperlink, you can cancel it by right-clicking on the offending address and selecting Hyperlink, Remove Hyperlink from the menu that pops up.

Fit wide tables to the page width
To make your tables fit neatly on the page, click on File, Page Setup…, select the Page tab, click on the Fit to:radio button and pick 1 page wide. Click on the tall box and press [Delete], leaving the box empty.

Hide your data from prying eyes
If you want to hide from view any sensitive data, highlight the relevant cell and click on Format, Cells… Click on the Numbers tab, select Custom from the Category: list, double-click on the Type: input box and enter ;;;. Undo the operation to make your data visible again.

Use template worksheets
Templates can save you considerable time when you’re setting up a new worksheet. Click on File, New…, select the Spreadsheet Solutions tab and choose a template from the list.

Access help for Lotus users
If you have converted some worksheets from Lotus 1-2-3 and find Excel confusing, you can access help specific to your situation by clicking on Help, Lotus 1-2-3 Help…

Use the formula browser
Select a cell and click on the Paste Function button on the main toolbar. Pick the function you require from the list box and click on OK. Now highlight the cells on which you want the target to perform the function and click on OK.

Customise your AutoFills
If you use the same list over and over in different worksheets, you might want to add it to your AutoFill list – this will save you heaps of time in future. Highlight your list, click on Tools, Options… and select the Custom Lists tab. Click on Import, then OK.

Use the Auto Calculator
If you need to calculate a sum based on a row or a column of figures and you can’t be bothered typing in a
function, just select your figures and glance down at the status bar – you’ll find the sum of the selected cells there.

A quick way to enter the time
To enter the current date or time click on a cell and type =today() or =now(). Excel updates the result every time you open the sheet, so it’s always current.

Enter a fixed time into Excel
If you want Excel to enter the current date or time and fix it at that point – for example, to show the last date the sheet was modified – click on a cell and press [Ctrl] + [;] for the date and [Ctrl] + [:] for the time.

Find the currently active cell
If you have been scrolling around your spreadsheet and you lose your place, you can jump back to the currently active cell by pressing the [Ctrl] + [Backspace] keys.

See the big picture
If you’re working on a large sheet you might want to switch to Full Screen mode: simply click on View, Full
Screen. Click on it again to return to a normal window.

Fit text automatically
Make your work look neater by selecting the relevant column, and clicking on Format, Column, AutoFit Selection.

Fast copy, no clipboard
Pressing [Ctrl] + [‘] is a speedy way to duplicate the formula or figure in the cell above the one you’re in.

Fast and easy multiple entry
If you need to enter a formula in several cells at once, simply select all the target cells, type your formula as normal and press [Ctrl] + [Enter].

Pick cells for Auto Calculator
You can select unconnected cells by holding down [Ctrl] while you click on the individual cells.

Hide comments to reduce clutter
You can hide notes and other comments by using the Insert Comment function.Highlight a cell, click on Insert, Comment and type your text. Click away from the input box when you’ve finished. The comment will appear whenever you pass your mouse over the relevant cell.

Re-colouring the grid lines
You can change the colour of the grid by clicking on Tools, Options…, selecting the View tab, clicking on the Color: list box and choosing a new colour from the palette. Choosing white effectively removes the grid completely.

Angle your entries…
To make Excel display the text in cells at an angle of 45 degrees, right-click on the toolbar, select Chart, and pick either of the ab icons on the new toolbar.

To any degree you like
If you want custom angles right-click on the cell and select Format Cells… From the pop-up menu, click on the Alignment tab, and then drag the Text pointer in the Orientation window.

Zoom in to your selection
You can have Excel display just the area you’re working in by highlighting the relevant cells, clicking on the arrow on the Zoom box on the toolbar and selecting Selection from the list.

Another default entry direction
When editing cells the cursor moves down when you press [Return]. To change the direction click on Tools, Options… and select Edit. Click on the Move selection after Enter list box and choose another direction from the list.

Launch Excel, open your file
Launch Excel, open the file you use most often, and click on File, Save As… In the Save As dialog, navigate to the Xlstart folder in your Office folder and click Save. Now the file will open automatically when you launch Excel.

Set decimal points
Click on Tools, Options… and select the Edit tab. Place a tick in the Fixed decimal tick box and use the arrows in the Places: input box to set the number of decimal places.

Calculate the median value
To calculate the median value of a number of figures, say A1 to A10, enter =median(A1:A10) into the target cell.

#NAME! and #NUM! errors
Excel returns a #NAME! or #NUM! error whenever a formula refers to nonexistent names or numbers. To sort it out, re-enter the formula correctly.

Quick sort your columns
The quickest way to sort a column into a hierarchy is to select it and click on the Sort Ascending or Sort Descending buttons (the ones with the AZ arrows).

Quickly change cell dimensions
The quickest way to change a column’s width or a row’s height is to place your mouse pointer close to the join between two columns or rows, then click and hold down the mouse button, and drag the column or row to the desired size .

Erasing entries while typing
If you mistype your formula, press [Esc] to erase the cell’s content.

Enter number sequences
Enter the first number in a cell, press the [Ctrl] key, and then click, hold and drag the cell’s handle until you have reached the desired number of cells.Release the mouse button first, and then the [Ctrl] key.

See formulas at a glance
You can view all of your formulas at once by clicking on Tools, Options…, selecting the View tab, and placing a tick in the Formulas tick box.

Highlight cells of a kind
You can select all the cells of a certain type by using the Special functions. Click on Edit, Go To…, click on the Special… button, choose the cell type from the dialog box and click on OK.

Switch off the zeroes
You can prevent zeroes from cluttering your sheets by clicking on Tools, Options…, selecting the View tab, and unticking the Zero values tick box.

Protect your work
Open the sheet you wish to protect and click on File, Save As… Click on the General Options… item in the Tools menu (in the top right corner of the Save As dialog) and enter a password in the Password to open: input box. Finally, click on the Save button. You might want to make a note of the password before continuing.

Customise your dates
You can customise the format of a date in a cell using the Custom cell formatter.To do this, enter a date in a cell, click on Format, Cells…, click on Custom in the Category: pane, click on the Type: input box and press [M] repeatedly until the desired format is displayed in the Sample area above.

Quick column copy
You can fill out the cells in a column by double-clicking on a cell’s handle.Excel will place copies of the clicked cell in each cell below, stopping when it reaches a cell with blanks either side.(Confused? Try this: enter a figure in cell A1, then enter figures in cells B1 to B5, then double-click on A1’s handle.)

Merge cell contents
To merge the contents of cells A1 and B1, click on cell C1 and enter =A1&B1.The result is not a sum but a text string, so merging 10 and 7 will return 107, rather than 17.

Use dynamic formatting
You can set Excel to alert you to critical figures in cells by setting it up so the colour or size of text in a given cell changes whenever a certain condition is reached. Select a cell (say, the cell containing the total of your bank balance) and click on Format, Conditional Formatting… Choose the conditions in the pop-up dialog (say ‘Cell value is less than 0’) and click on the Format… button. Now choose a new colour in the Color: list box and click on OK. Click on OK again to finish. From now on Excel will display your chosen figure in the new colour whenever the figure falls below zero.

Border connected cells
You can place a border around a group of related cells – all the totals, for example – by selecting them and
clicking on Format, Cells…, then selecting the Border tab and clicking on the Outline button.

Shrink entries to fit their cells
You can force Excel to display the full text of a cell by using the Shrink to fit option. Click on Format, Cells…, click on the Alignment tab and place a tick in the Shrink to fit tick box. Obviously, the more text you have, the smaller it’ll be, so this isn’t practical for small cells with lots of content.

Create hyperlinks to support files
To place links in cells that enable you to load other documents with one click, enter a name for the link in a cell and press [Ctrl] + [K]. Click on the File… button. Navigate to the file you wish to link to. Double-click on it and click OK. From now on, whenever you click in that cell, Excel will jump to the file.

I think these short cut functions of Excel will help you. Kindly note that these commands are may not be workable in all excel version but most of versions have this features.Further there is only on method/procedure to solve one query is given though there are more than one methods in excel to do same thing.


Recovery and adjustment of dues of Government or University or Management.

1. It shall be the duty of the Registrar or the Principal of the affiliated college to ascertain and assess the management's or the University's dues or the Government dues payable by a non-teaching employee due for retirement.

2. The dues as ascertained and assessed by the Registrar or the Principal of the affiliated college which remain outstanding till the date of retirement of the non-teaching employee shall be adjusted against the amount of the death-cum-retirement gratuity becoming payable.

3. The expression "dues" includes dues pertaining to the balance of house building or conveyance or any other advance, over payable of pay and allowance or leave salary and arrears of Income-Tax Deduction at source under the Income-Tax Act, 1961 (XIIIL of 1961).