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Showing posts with label Income Tax Refund. Show all posts
Showing posts with label Income Tax Refund. Show all posts

First Priority to Issue of IT Refunds - CBDT

Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes

New Delhi, 13th February, 2017.

Press Release

Expeditious Issue of Refunds is a High Priority for the Central Board of Direct Taxes

The Centralised Processing Centre (CPC) of the Income Tax Department (ITD) has already processed over 4.19 crore Income Tax Returns (ITRs) and issued over 1.62 crore refunds during the current financial year up to 10th February, 2017. The amount of refunds issued at Rs.1.42 Lakh Crore is 41.5% higher than the corresponding period last year.

As a result of emphasis on expeditious issue of refunds, 92% of all Income Tax returns were processed within 60 days demonstrating CBDT’s commitment to faster and more efficient taxpayer service. Of the refunds issued, 92% are below Rs.50,000 due to the high priority given to expeditious issue of refunds to small taxpayers. Only 2% of refunds less than Rs. 50,000 are remaining to be issued. Majority of these cases relate to recently filed ITRs or where the taxpayer’s response to the Department is awaited.

Taxpayers reposed faith in CBDT’s e-governance initiatives by filing electronically a whopping 4.01 Cr ITRs till 10th February 2017 representing an increase of 20% over the previous year. Also, more than 60 lakh other online forms were filed with an increase of nearly 41% compared to the previous year.

Taxpayers are advised to verify and update their email address and mobile number on the e-filing website to receive electronic communication. CBDT is committed to ensuring best possible taxpayer services through its e-governance programs and increasing the coverage and scope of electronic filing and processing of various forms and applications.

(Meenakshi J Goswami)
Commissioner of Income Tax
(Media & Technical Policy)
Official Spokesperson, CBDT.

Complete Procedure to Send Request for Re-Issue Income Tax Refund.

Many Taxpayers did not know how to get Income Tax Refund in case of Income Tax Refund Failure by any reason from Income Tax Department side.  The 7 simple steps to request for Income Tax Refund Re-issue, please follow the below steps :

STEP - 1 :
Login to e-Filing website with User ID, Password, Date of Birth/ Date of Incorporation and Captcha.

STEP - 2 :
Go to My Account and click on "Refund Re-issue Request".

STEP - 3 :
Enter PAN, Assessment Year, CPC Communication Reference Number, Refund Sequence Number (available on the 143(1) Intimation order and Click on 'Validate' button. 

STEP - 4 :
After validation, taxpayer can select the mode of Refund Reissue from the options.

The two modes of Refund Reissue are:
  • ECS
  • By Paper (Cheque)

STEP - 5 :
Taxpayer can select to update the Bank Account Details from the option under the field 'Do you want to update Bank Account details? 

'If the taxpayer selects 'Yes', taxpayer has to enter details in the additional fields i.e. Bank Account number, Type of Account and IFSC code/ MICR code.

STEP - 6 :
Taxpayer can select the address to which the cheque has to be sent under the dropdown 'Category'.
  • If the taxpayer selects 'ITR Address', address provided in the ITR uploaded is used.
  • If the taxpayer selects 'PAN Address', address provided in the PAN is used.
  • If the taxpayer selects 'New Address', taxpayer has to enter details in the additional fields displayed.

STEP - 7 :
Taxpayer clicks on "Submit" to validate the details. 

On successful validation, Taxpayer will get the message success message .

This ends the process of refund re-issue by Taxpayer.

CBDT Extends Time Limit for Processing of Returns Having Refund Claim.

CBDT extends time-limit for processing of returns having legitimate refund claim

Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes

North Block, New Delhi, th 25th of October, 2016

Order under section 119 of Income Tax Act, 1961

Subject:  Issue of Intimation under section 143 (1) of Income Tax Act, 1961 beyond the prescribed time in non-scrutiny cases-reg.-

It has come to notice that some returns of income having "claim of refund" pertaing to Assessment Years 2014-2015, 2013-2014 and 2012-2013 were not processed within the time-frame prescribed under sub-section (1) of section 143 of the Income Tax Act, 1961 ("Act"). Consequently, intimation of "amount of refund due" which is issued to the taxpayer after processing the income-tax return could not be sent.  This has led to a situation where the concerned taxpayer is unable to get his legitimate refund in accordance with provisions of the Act, although the delay is not attributable to him.

2.  On consideration of the matter, in instances where a valid return-of-income having "claim of refund" for Assessment years 2014-2015. 2013-2014 and 2012-2013 was failed either under section 139 or 142 (1) of the Act and in which the time for sending intimation under sub-section (1) of section 143 has lapsed, the Central Board of Direct Taxes ("CBDT"), by virtue of its powers under section 119 ofthe Act, hereby relaxes the time-frame prescribed in second proviso to sub-section (1) of section 143 and directs that such returns-of-income shall now be processed by 31.03.2017.  Further, intimation of processing the consequential refund, if any, shall be issued expeditiously as per the prevailing norms and existing provisions of the Act.

3.  However, the above relaxation shall not be application to those cases where the said return of income was not processed in view of provisions of sub-section (1D) of section 143 of the Act.  Further, this relaxation shall not be applicable to those cases where either demand is shown as payable in the return of income or is likey to so arise after processing the return of income.

4.  The contents of this order may be brought to the notice of all for necessary compliance.

(Rohit Garg)
Deputy Secretary to the Government of India

(F.No.225/220/2016-ITA.II)

Copy to:
1. Chairperson (CBDT) and all Members of CBDT
2. All Pr. CCsIT/DsGIT
3. Pr.DGIT(Systems) for further necessary action in the matter
4. ADG(Systems)-4 with request for uploading on official website in public domain
5.  All Officers and Technical Sections of CBDT
6.  ADG(PR,PP & OL) with request to post a tweet on official handle of the Department
7. ITCC Division of CBDT
8. Database Cell for uploading on IrS Officers website
9. Guard File

(Rohit Garg)
Deputy Secretary to the Government of India

Deductor to get Interest on TDS Refund only from date of return filing.

Deductor to get interest on TDS refund from date of filing claim and not from date of deposit of TDS

Where TDS u/s 195 becomes refundable to resident deductor on account on non-resident payee waiving the payment and the resident deductor delays filing the refund application to the Department(files it 18 months after the date of waiver by non-resident), he will be entitled to interest on refund u/s 244-A only from the date of filing the refund claim only and not from date of deposit of TDS as law favours the vigilant only and not those who slumber and Department cannot be made liable for interest for any period prior to the date on which facts giving rise to refund are brought to the Department's notice

source: www.taxmann.com

Good News for Taxpayee, who are waiting for Income Tax Refund.

As per Office Memorandum issued by CBDT, the Government has directed to Income Tax Officials to issue refunds in case where outstanding arrears are upto Rs. 5000/- without any adjustment for Asstt. Year 2013-14 and 2014-15.

The Government decided to provide relief to the small taxpayers for refunds by  reduce grievances and enhance taxpayer satisfaction. The Central Board of Direct Taxes had issued instructions to the Central Processing Centre (CPC), Bengaluru and the field officers in December regarding refunds in cases where arrears demand upto Rs. 5000/- may be issued without any adjustment of outstanding arrears under section 245 of the Act during Fin. Year 2015-16.

Similarly, the non-CASS cases for these assessment years where the refund amount is more than Rs. 5000/- but the outstanding arrears is Rs. 5000/- or less may also be processed for issue of refund without any adjustment under section 245.

Complete Procedure for Refund/Demand Status, Request for Refund Re-issue.

After making any payments either Salary or Interest TDS is required to be deducted as per Income Tax from Deductee.  If the TDS Deducted Amount is excess than TAX liability amount in this conduction, the excess paid TDS returned to Taxpayee after TAX Assessment by Income Tax Department.  But, some times the refund of TDS or excess paid tax unable to get taxpayee due to following reasons :
  1. Expired Cheque
  2. Incorrect A/C No
  3. House Locked
  4. Party Shifted
  5. No such Address
  6. No such person
  7. Incorrect MICR code/unavailable
  8. Account has been closed
  9. Account Description incorrect
  10. Others
  11. Mendatory fields missing (Account Number/Account Name/Account type/Address/City/State/Pincode)
  12. Incorrect A/c Number Length
  13. Invalid A/c. No.
  14. Invalid A/c. No. (Between to special characters there shoube be atleast one alphabet/number)
  15. Invalid A/c Number (First character in A/c. No. should be an alphabet/number only.)
  16. Invalid A/c. No. (Last Character in A/c. No. should be a number.)
  17. Invalid A/C Number (Numeric string between alphabets or special characters cannot be all zeros)
  18. Invalid character in A/c. Number
  19. Address not valid (Invalid Characters or too long Address)
  20. Invalid character in Account Name or Name too short
  21. No numeric digit in Account Number
  22. Invalid IFSC Code
  23. Name mismatch with Bank Account Hoder

View Refund/ Demand Status
To view Refund/ Demand Status, please follow the below steps:

Step - 1 :    Login to e-Filing website with User ID, Password, Date of Birth / Date of Incorporation and Captcha.
Step - 2 :    Go to My Account and click on "Refund/Demand Status".
Step - 3 :    Below details would be displayed.
              * Assessment Year
              * Status
              * Reason (For Refund Failure if any)
              * Mode of Payment is displayed.

How to Request for Refund Re-issue (in case of refund failure)
To request for Refund Re-issue, please follow the below steps:

Step - 1 :    Login to e-Filing website with User ID, Password, Date of Birth/ Date of Incorporation and Captcha.
Step - 2 :    Go to My Account and click on "Refund Re-issue Request".
Step - 3 :    Enter PAN, Assessment Year, CPC Communication Reference              
                   Number, Refund Sequence Number (available on the 143(1) Intimation order and Click on 'Validate' button.
Step - 4 :    After validation, taxpayer can select the mode of Refund Reissue from the options.
              The two modes of Refund Reissue are:
              * ECS
              * By Paper (Cheque)
Step - 5 :    Taxpayer can select to update the Bank Account Details from the option under the field 'Do you want to update Bank Account details?
              'If the taxpayer selects 'Yes', taxpayer has to enter details in the additional fields i.e. Bank Account number, Type of Account and IFSC code/ MICR code.
Step - 6 :    Taxpayer can select the address to which the cheque has to be sent under the dropdown 'Category'.
              If the taxpayer selects 'ITR Address', address provided in the ITR uploaded is used.
              If the taxpayer selects 'PAN Address', address provided in the PAN is used.
              If the taxpayer selects 'New Address', taxpayer has to enter details in the additional fields displayed.
Step - 7 :    Taxpayer clicks on "Submit" to validate the details.
              On successful validation, Taxpayer will get the message success message .

To View Complete Procedure (Click Here)
To Download Complete Procedure (Click Here)

5 Simple Steps to file 6 Asstt. Years Income Tax Returen for Claim TDS Refund.

This post is posted by Alok Patnia on 18th June, 2015 on www.taxmantra.com.  The details information about Income Tax Return can be filed for 6 Assessment Year to Claim TDS Refund is as under:

Missed out to claim refund for past years? We all are aware that for last 2 years, we have options to file Income Tax Return and claim our refund.    images (3)However, if claim is for beyond 2 years then what option we have? Forget such refund? The answer is NO. As we have already mentioned in our article, Claim refund even if there is delay in filing refund claim, with the coming of the Circular No. 9/2015, we can claim refund by filing Income Tax Return for last 6 Assessment Years. So, claiming refund beyond last 2 years is no more a nightmare. Thus, Income Tax Return can be filed for 6 Assessment Years to Claim TDS Refund.

Income Tax Department in the said circular has guided on how an assessee who has failed to file income tax return can claim refund. Now, make an application and get refund due up to last 6 Assessment years. For this, just follow the following simple steps and get your refund for last 6 AY:

STEP ONE: FILE AN APPLICATION
In case the amount is less than Rs 10 Lakhs for any one assessment year the application shall be made to the Pr.CsIT/CIT. CIT will review the application & communicate acceptance/rejection with reason of such applications/claims. In case the amount is more than Rs 10 Lakhs the application to be made to Chief Commissioner of Income Tax. In case the amount is more than Rs 50 Lakhs then to CBDT.

STEP TWO: CONDONATION UPTO 6 YEARS
Condonation Application can be file up to six previous years. It is to be noted that even loss can be claimed for carry forward. The officer will ensure that the income/loss declared and /or refund claimed is correct and genuine and also that the case is of genuine hardship on merits.

STEP THREE: CLEARANCE FROM AUTHORITIES
The power of accepting or rejecting the Condonation Application of Delay shall be subject to the condition that the Income of assessee is not assessable in the hands of other person under any provision of Income Tax Act. Further, no Interest shall be admissible on belated claim of refund and the refund has arisen due to excess payment of Advance Tax or Self-Assessment Tax or due to excess deduction of TDS.

STEP FOUR: SUPPLEMENTARY CLAIMS
A belated application for supplementary claim of refund (claim of additional amount of refund after completion of assessment for the same year) can be admitted for condonation provided other conditions as referred above are fulfilled.

STEP FIVE: CUMULATIVE INTEREST BEYOND SIX YEARS
In the case of 8% Savings (Taxable) Bonds, 2003 issued by Government of India opting for scheme of cumulative interest on maturity but has accounted interest earned on mercantile basis and the intermediary bank at the time of maturity has deducted tax at source on the entire amount of interest paid without apportioning the accrued interest/TDS, over various financial years involved, the time limit of six years for making such refund claims will not be applicable.

Claiming refund is thus, now possible for last 6 Assessment Years against 2 years. Once an application is filed to the appropriate authority and gets it approved then one can file its Income Tax Return to get your refund which was once not possible.

Source: www.taxmantra.com by Alok Patnia

New Guidelines on condoning delay in filing returns involving refund claims - CBDT

Recently CBDT has been issued a circular regarding Condonation of delay in filing refund claim and claim of carry forward of losses under Section I I9(2)(b) of the Income-tax Act which is as under :

Circular No. 9/2015
F.No.3 12/22/2015-01
Government ot'India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
Dated: 9thJune, 2015

Subject: Condonation of delay in filing refund claim and claim of carry forward of losses under Section I I9(2)(b) of the Income-tax Act

In supersession of all earlier Instructions/Circulars/Guidelines issued by the Central Board of Direct Taxes (the Board) from time to time to deal with the applications for condonation of delay in tiling returns claiming refund and returns claiming carry forward of loss and set-off thereof under section 119(2)(b) of the Income-tax Act( the Act), the present Circular is being issued containing comprehensive guidelines on the conditions for condonation and the procedure to be followed for deciding such matters.

2. The Principal Commissioners of Income-tax/Comm ss oners of Income-tax (Pr.CsIT/CsIT) shall be vested with the powers of acceptance/rejection of such applications/claims if the amount of such claims is not more than ZI0 lakhs for any one assessment year The Principal Chief Commissioners of Income-tax/Chief Commissioners of Income-tax (PLCCsIT/CCsIT) shall be vested with the powers of acceptance/rejection of such applications/claims if the amount of such claims exceeds ZIO lakhs but is not inure than Rs. 50 lakhs for any one assessment year. The applications/claims for amount exceeding Rs.50 lakhs shall be considered by the Board.

3. No condonation application for claim of refund/loss shall be entertained beyond six years from the end of the assessment year for which such application/claim is made. This limit of six years shall be applicable to all authorities having powers to condone the delay as per the above prescribed monetary limits, including the Board. A condonation application should be disposed of within six months from the end of the month in which the application is received by the competent authority, as far as possible.

4. In a case where refund claim has arisen consequent to a Court order, the period for which any such proceedings were pending before any Court of Law shall be ignored while calculating the said period of six years, provided such condonation application is filed within six months from the end of the month in which the Coon order was issued or the end of financial year whichever is later. 

5. The powers of acceptance/rejection of the application within the monetary limits delegated to the Pr.CCsIT/CCsIT/Pr.CsITICsIT in case of such claims will be subject to following conditions:
  • At the time of considering the case under Section I I9(2)(b), it shall be ensured that the income/loss declared and /or refund claimed is correct and genuine and also that the case is of genuine hardship on merits.
  • The Pr.CCIT/CCIT/Pr.CIT/C1T dealing with the case shall be empowered to direct the jurisdictional assessing officer to make necessary inquiries or scrutinize the case in accordance with the provisions of the Act to ascertain the correctness of the claim.

6. A belated application for supplementary claim of refund (claim of additional amount of refund after completion of assessment for the same year) can be admitted for condonation provided other conditions as referred above are fulfilled. The powers of acceptance/rejection within the monetary limits delegated to the Pr.CCsIT/CCsIT/Pr.CsIT/CsIT in case of returns claiming refund and supplementary claim of refund would be subject to the following further conditions;
  1. The income of the assessce is not assessable in the hands of any other person under any of the provisions of the Act.
  2. No interest will be admissible on belated claim of refunds.
  3. The refund has arisen as a result of excess tax deducted/collected at source and/or excess advance tax payment and/or excess payment of self•assessment lax as per the provisions of the Act.

7. In the case of an applicant who has made investment in 8% Savings (Taxable) Bonds, 2003 issued by Government of India opting for scheme of cumulative interest on maturity but has accounted interest earned on mercantile basis and the intermediary bank at the time of maturity has deducted tax at source on the entire amount of interest paid without apportioning the accrued interest/TDS, over various financial years involved, the time limit of six years for making such refund claims will not be applicable.

8. This circular will cover all such applications/claims for condonation of delay under section I 19(2Xb) which are pending as on the date of issue of the Circular. 

9. The Board reserves the power to examine any grievance arising out of an order passed or not passed by the authorities mentioned in para 2 above and issue suitable directions to them for proper implementation of this Circular. However, no review of or appeal against the orders of such authorities would be entertained by the Board. 

(Ekta Jain)
Deputy Secretary to Gov. of India 

Copy to:
1. The Chairperson, Members and all officers of CBDT of the rank of Under Secretary & above
2. All Pr.CCAT/CCsIT/Pr.DGsIT/DGsIT for circulation in their region
3. Data base cell for uploading on IRS website
4. ITCC Section, CBDT
5. DIT(PR,PP&OL) for printing in the quarterly tax bulletin and for circulation as per usual mailing list (100 copies)
6. C&AG of India (40 copies)
7. Guard File 

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.

How to Request re-issue of Income tax Refund? Detailed Procedure.

Income Tax Refund cheque issued by CPC Bangalore Returned undelivered or not been credited due to wrong account info, expired cheque etc?

Now days Assessee who file their Income tax Return online gets their refund cheque issued by CPC Bangalore. Refunds are issued by two modes:-
  1. By crediting the refund amount in Assessee’s bank account if the Assessee has correctly mentioned his bank details in Income tax Return Filed by him.
  2. By sending Income Tax Refund Cheque if Assessee failed to submit or correctly mention his bank account details in Income tax Return filed by him.
In case of Physical cheques there may be chances that after filing of Income tax Return Assessee has moved to new address and his Income tax Refund cheque issued by CPC Bangalore returned back for non-delivery.  There may also be a chance that although address is not changed but Assessee could not receive the refund order as no one was there on the day when cheque was delivered or Refund cheque returned undelivered by the postal department as the house was locked.

Further in case Assessee has applied for ECS but has entered wrong account details or account of which details been entered is closed and ECS to such account been failed.

In such cases one question arises what Assessee should do to request reissue of Refund cheque or how to request Credit of that account in his bank account and how to intimate the change in address?

Procedure to apply for refund – reissue for refund related to AY 2009-10 and succeeding years
  • Logon on to https://incometaxindiaefiling.gov.in/ with your user ID and Password.
  • Go to MY Account →Refund Reissue Request
  • Screen below appears, you need to enter the necessary details and click on submit button.
REFUND REISSUE SCREEN


Please refer to the pictorial representation shown below; indicating the CPC reference number and refund sequence number as can be seen in the Order u/s 143(1)/154, Income Tax Act, 1961.
Intimation Pictorial Representation:

Assessee has two options to apply Refund Reissue- ECS or Paper.

ECS Mode: Select mode of Refund reissue, Bank Account Details – Can be changed, if required, category and click submit.

Paper Mode: If assessee applies refund reissue through Paper mode. This option envisages the assessee to get refund through cheque to the address selected by the assessee.

 

Refund Reissue related to AY 2008-09 to be applied through response letter to CPC.

Paper return which were processed at CPC, refund reissue can be applied only through sending response directly to CPC.
  • please note that from AY 2013-14 onwards, Assessee need enter IFSC code instead of MICR code for
  • Find below the table with reasons for refund failure at CPC and the resolution thereof.
Procedure to apply for refund – reissue for refund related to A.Y. 2008-09
Assessee needs to download the address/bank-details modification form (Response Sheet) from the website of Income Tax department, fill the same and after that he needs to send the same by ORDINARY or SPEED POST along with cancelled cheque and other supporting documents to:
“Income Tax Department – CPC, Post Bag No – 1, Electronic City Post Office, Bangalore – 560100, Karnataka”

To Download the need to take Response Sheet Assessee Following steps:-
  1. Visit https://incometaxindiaefiling.gov.in/portal/index.do 
  2. Enter login details.
  3. after login go to sub menu ‘Response Sheet for Refund Failure Status’ under the main menu ‘My Account’ (Please note I have not found the link in Menu which was there earlier)
  4. Download the response sheet.
  5. It is to be noted if there is any change in address of the Assessee needs to get the same updated with PAN master database by filing Form No. 49Afor correction in PAN Data.

Refund and Return of TDS.

Refund of TDS :
In case of excess deduction of tax at source, claim of refund of such excess TDS can be made by the deductor. The excess amount is refundable as per procedure laid down for refund of TDS vide Circular No.2/2011 dt. 27.4.11 (which supersedes the earlier circular no.285 dt 21.10.1980 on this subject).  The difference between the actual payment made by the deductor and the tax deductible at source, will be treated as the excess payment made.

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.

In case, the deduction 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. However, for refund claims pertaining to the period upto March 31, 2009 may be submitted to the assessing officer (TDS) upto 31.3.2012.

However, to avoid double claim of TDS by the deductor as well as by the deductee, the following safeguards must be exercised by the Assessing Officer concerned:
The applicant deductor shall establish before the Assessing Officer that:

  • it is 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); and
  • 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 in excess of Rupees One Lakh and Rupees Ten Lakh respectively.

After meeting any existing tax liability of the deductor, the balance amount may be refunded to the deductor.

In view of provisions of section 200A of the Income-tax Act prescribing processing of statement of TDS and issue of refund with effect from 1-4-2010, this circular will be applicable for claim of refunds for the period upto 31-3-2010.

Return of TDS :
A return of TDS is a comprehensive statement containing details of salary paid and taxes deducted thereon from the employees along with other prescribed details. For deductions made prior to 01.04.2005 every deductor was required as per the provisions of Section 206 (read with Rule 36A and 37) to prepare and deliver an annual return, of tax deducted at source in form no. 24. Such a return was to be prepared and signed by the following - (a) the DDO or the prescribed officer in case of a government office; (b) the principal officer in the case of every company; (c) the managing partner/ partners in the case of a firm; (d) managing trustee in the case of trust; (e) Karta in the case of HUF; (f) prescribed person in the case of a local authority/public body/association. However w.e.f. 01.04.2006 there is no requirement to file annual returns and instead Quarterly statements of T.D.S. are to be submitted in form 24Q by the deductors specified above. The quarterly statement of the last quarter in form 24Q as amended by notification no. 119 dated 12.05.2006, S.O. 704(E), shall be treated as annual return of T.D.S.

All about Income Tax Refunds - FAQs

From which date the refund banker has been implemented?
The refund banker has been implemented from January 24, 2007.

In which cities the refund banker has been implemented ?
The refund banker facility is operational for non-corporate taxpayers assessed all over India.

Who will send the refund to me?
The State Bank of India (SBI) is the refund banker to the Income Tax Department (ITD). The Cash Management Product department of SBI (CMP SBI) processes the refunds under the refund banker scheme. Details of refunds are forwarded to CMP SBI by the ITD. CMP SBI processes the refunds and sends the refund intimation to the taxpayer.

How will the refund be sent to me?
Refunds are generated in two modes i.e., ECS and paper . If the taxpayer has selected mode of refund as ECS (direct credit in the bank account of the taxpayer) at the time of submission of income return the taxpayer’s bank A/c (at least 10 digits ) and MICR code of bank branch and communication address are mandatory .

For taxpayers who have not opted for ECS refund will be disbursed by cheque or demand draft.

For generation of refund through paper cheque bank account no, correct address is mandatory.

How can I know the status of my refund?
The taxpayer can track the status of its refund from the Departmental Website www.incometaxindia.gov.in / NSDL-TIN website www.tin-nsdl.com by clicking on “Status of Tax Refunds”.

Refund status can be tracked by entering the PAN and Assessment Year for which refund is to be tracked.

Status of the refund can also be tracked by contacting the help desk of SBI's at toll free number: 18004259760 or email at: - .

If I have shifted my residence whom should I contact for updating my correspondence address for receipt of refund?
The tax payer should contact its Assessing Officer and inform about the change in the correspondence address.

If my bank account has been closed how will I get refund credit into the account?
In case of change or updation in the bank account number the taxpayer should provide the correct account number along with the MICR code where credit is to be effected to the Assessing Officer.

Whom do I contact if the refund dispatched has not been received?
The tax payer can contact its local post office with the speed post ref no displayed at the NSDL-TIN website

I have received the physical ECS refund advice and status of refund is “paid” on website of refund status track but my account has not been credited. Whom do I contact?
In case credit is not effected in the taxpayer account through ECS but the refund advice has been received by the taxpayer AND the status shown is “paid”- in that case, the tax payer should contact his bank or SBI. You should contact SBI at the following address.

Cash Management Product (CMP)
State Bank of India
SBIFAST
31, Mahal Industrial Estate
Off Mahakali Caves Road
Andheri (East)
Mumbai - 400 093.
Phone Number: 18004259760 or email at 

I have neither received the physical ECS refund advice and status of refund is “unpaid” on website track. Whom do I contact?
The tax payer should provide the correct account number and MICR code to concerned Assessing officer, where credit is to be effected. The Assessing Officer will inform SBI to send a fresh refund cheque to the taxpayer.

If the date of encashing the refund cheque expires, whom should I contact?
The tax payer should contact their Assessing Officer as well as CMP SBI at the below address:

Cash Management Product (CMP)
State Bank of India
SBIFAST
31, Mahal Industrial Estate
Off Mahakali Caves Road
Andheri (East)
Mumbai - 400 093.
Phone Number: 18004259760 or email at 

How do I rectify any mistakes in the name, assessment year, PAN, account number printed on the refund cheque delivered to me?
In case of any mistakes on the refund cheque delivered to you, the following should be done:

  1. Send the original refund cheque to CMP, State Bank of India at SBIFAST 31, Mahal Industrial Estate, Off Mahakali Caves Road, Andheri East, Mumbai - 400 093, Phone Number: 18004259760, along with a letter informing the mistakes on the refund cheque.
  2. Send a copy of the letter along with a copy of the refund cheque to your Assessing Officer.
  3. Retain a copy of the letter and refund cheque with you.

If somebody else’s refund cheque / advice is delivered to me what should I do?
You should contact SBI at the following address and return the refund cheque / advice.

Cash Management Product
State Bank of India
SBIFAST
31, Mahal Industrial Estate,
Off Mahakali Caves Road,
Andheri (East)
Mumbai - 400 093
Phone Number: 18004259760 or email at 

Is there any method available to know whether the refund record has been generated for the taxpayer?
The taxpayer can track the status of its refund from the NSDL-TIN website www.tin-nsdl.com by clicking on “Status of Tax Refunds”.

Refund status can be tracked by entering the PAN and Assessment Year for which refund is to be tracked.

Status of the refund can also be tracked by contacting the help desk of SBI at 080-26599760.

Whom do I contact for queries related to payment of refund which has been processed by ITD?
For any payment related query the taxpayer should contact SBI at 18004259760 or email at .

Whom should I contact for refund related queries?
For any refund related query the tax payer should contact Aaykar Sampark Kendra at 0124 2438000 or email at .

For refund related query/ or any modification in refund record relating to Return processed at CPC Bangalore, the CPC may be contacted by the taxpayer on 1-8004252229 or 080-43456700.

CBDT speeds up refund claims of taxpayers of J&K - Press Release

CBDT has issued a press released on 15thth October, 2014 regarding immediate issue of Income Tax Refund claim to taxpayers of J & K due to devastation caused by floods u/s. 139 of Income Tax Act, 1961.

In view of the large devastation caused by the recent floods in Jammu & Kashmir, the Income tax Department is taking necessary steps to process expeditiously the refund claims of the taxpayers residing in the state of Jammu & Kashmir who have submitted their returns through electronic mode. Instances have come to notice where the refund cheques could not be delivered at the address indicated by the taxpayers in their returns due to dislocation caused by floods.

Non-Corporate taxpayers of Jammu and Kashmir who desire to provide a new address for delivery of their refund cheques, may log in to the e-filing site https://incometaxindiaefiling.gov.in, and update their address through the path Profile Setting -> My Profile-> Address . Alternatively, the taxpayers can contact the helpdesk at Centralised Processing Centre (CPC), Bangalore at 1800 425 2229 and provide the updated address.


Refund of TDS couldn’t be denied evenif mismatch Form 26AS when tax was deducted by Govt. Dept.

Refund claim made by deductee could not be denied by Assessing Officer on ground that there was mis-match between details furnished by deductee and Form 26AS without verifying whether or not deductor had made payment of TDS in government account.

In this regard CBDT has issued an important instruction to all IT Officers regarding refund of Income Tax as deposited by Taxpayee to Income Tax Department without matching 26AS Statement or PAN Ledger with Refundee's PAN.  In this regard following instruction is clarify mentioned that TDS Certificate (Form-16 or Form-16A) is very important evidence for this condition.  Read the following instruction for more details.

SECTION 139, READ WITH SECTION 199 OF THE INCOME-TAX ACT, 1961 - RETURN OF INCOME - CREDIT OF TDS U/S 199 TO AN ASSESSEE WHEN THE TAX DEDUCTED  HAS BEEN DEPOSITED WITH REVENUE BY DEDUCTOR - DIRECTION OF HON'BLE DELHI HC IN THE CASE 'COURT ON ITS OWN MOTION VS. UNION OF INDIA &ORS. IN WP(C) 2659/2012 & WP(C) 5443/2012'

INSTRUCTION NO. 5/2013 [F.NO.275/03/2013-IT(B)], DATED 8-7-2013

1. The CBDT issues instructions with respect to processing of Income-tax returns and giving credit for TDS thereon in the case of TDS mismatch. A few of the instructions on this subject issued in previous years are Instruction No. 1/2010 (25-2-2010) for returns pertaining to A.Y, 2008-09; Instruction No. 05/2010 (21-7-2010), Instruction No. 07/2010 (16-8-2010) and Instruction No. 09/2010 (9-12-2010) for returns pertaining to AY. 2009-10; Instruction No. 02/2011 (9-2-2011) for returns pertaining to A.Y. 2010-11; and Instruction No. 1/2012 (2-2-2012) and Instruction No. 04/2012 (25-5-2012) for returns pertaining to A.Y. 2011-12. The instructions gave decisions and the manner in which the TDS claims were to be given credit while clearing the backlog of returns pending processing. In the cases that did not fall under the specific TDS amount limit or refund amount computed, the residuary clause in these instructions gave the manner of processing those returns and it stated that "TDS credit shall be given after due verification ".

2. The Hon'ble Delhi High Court vide its judgment in the case 'Court On its Own Motion v. UOI and Ors. (W.P. (C) 2659/2012 & W.P. (C) 5443/2012 dated 14-3-2013) has issued seven mandamuses for necessary action by Income-tax Department, one of which is regarding the issue of non-credit of TDS to the taxpayer due to TDS mismatch despite the assessee furnishing before the Assessing Officer, TDS certificate issued by the deductor.

3. In view of the order of the Hon'ble Delhi High Court (reference: para 50 of the order); it has been decided by the Board that when an assessee approaches the Assessing Officer with requisite details and particulars in the form of TDS certificate as an evidence against any mismatched amount, the said Assessing Officer will verify whether or not the deductor has made payment of the TDS in the Government Account and if the payment has been made, credit of the same should be given to the assessee. However, the Assessing Officer is at liberty to ascertain and verify the true and correct position about the TDS with the relevant AO (TDS). The AO may also, if deemed necessary, issue a notice to the deductor to compel him to file correction statement as per the procedure laid down.

4. Thus, the manner laid down by the Hon'ble HC in the above mandamus may be one of the method of due verification as mentioned in the various instructions referred in para (1) above.

5. This may be brought to notice of all Officers working under your jurisdiction for compliance.

CBDT constituent Committee to Reduce Tax Disputes cases.

The Central Board of Direct Taxes (CBDT) has constituted a six-member panel vide Office Memorandum [F.NO.279/MISC./M-84/2014-(ITJ)], DATED 17-7-2014 to examine the “efficacy“ of the existing primary litigation mechanism for income tax, taking forward the new government's resolve to bring down tax disputes.

 An estimated Rs. 4 lakh crore of tax revenue is locked up in litigation. The empowered committee has also been mandated to suggest steps to reduce legal cases at the income tax department's two dispute resolution for a and asked to submit its report in eight weeks. Senior Indian Revenue Service (IRS) officer and chief commissioner of the income tax office in Ahmedabad Rani S Nair has been made chairperson of the panel. Five other commissioners, drawn from various field formations of the I-T department, will be members of the panel. The committee would scrutinise close to 7,000 sample cases in the I-T department's dispute resolution fora as part of its task. Over 30,000 cases, in which an amount of Rs. 4 lakh crore is stuck, are pending in these fora, the official added.

“It has been decided to constitute a committee to appraise the efficacy of existing dispute resolution forums of Commissioners of I-T (Appeals) and Income Tax Appellate Tribunal (ITAT) and to suggest steps to reduce litigation before these fora,“ the apex direct taxes body said in a notification. According to the terms of reference issued by CBDT, the committee will carry out detailed analysis of appellate orders and assessment orders on various aspects and recommend steps to reduce litigation before CIT (Appeal). It will also “study the efficacy of existing system of filing appeals to the ITAT by the department and suggest steps to reduce litigation before the ITAT after analysing various aspects“.

There is a four-stage grievance redressal and litigation mechanism available to a taxpayer, beginning with an appeal to the Commissioner of I-T Appeals called CIT (A), up to the ITAT and subsequently to the high courts and the Supreme Court. The CBDT has also asked the new committee to undertake a fresh initiative and categorise and study select assessment orders issued by I-T officers across the country under various income groups (returned income). The categories defined by CBDT include income under Rs. 25 lakh, income between Rs. 25 lakh and Rs. 1 crore, between Rs. 1 crore and Rs. 10 crore, and above Rs. 10 crore. The Office Memorandum regarding Tax Disputes is as follows:
CONSTITUTION OF A COMMITTEE TO STUDY THE APPELLATE ORDERS TO EXAMINE FILING OF APPEALS BY DEPARTMENT BEFORE VARIOUS FORUMS
OFFICE MEMORANDUM [F.NO.279/MISC./M-84/2014-(ITJ)], DATED 17-7-2014
It has been decided to constitute a Committee to appraise the efficacy of existing dispute resolution forums of CsIT (A) & ITAT and to suggest steps to reduce litigation before these forums. The composition of the Committee is as follows: 
Sl. No
Name
Designation
1.
Ms. Rani S Nair
Chief Commissioner of Income tax- II, Ahmedabad
Chairperson
2.
Ms. Uma Singh
CIT(J),Mumbai
Members
3.
Sh. Rakesh Goyal
CIT-XXI, Kolkata

4.
Sh. D K Mishra
CIT (J), Delhi

5.
Sh. Rajib Hota
CIT(TDS),Chennai

6.
Sh. D S Kalyan
CIT(ITAT)-V, Ahmedabad

1.2 The Chairperson may appoint an officer as Member Secretary. The Committee may co-opt other members as it deems fit to have proper representation, co-ordination and feedback from ITAT at non-metro stations.
2. The Committee shall submit its report within 8 weeks from the date of its constitution.
3. The terms of reference of the committee will be as follows.
(i) To carry out detailed analysis of appellate orders and assessment orders, on various aspects as suggested in Para 7 and recommend steps to reduce litigation before the CIT(A).
(ii) To study the efficacy of existing system of filing appeals to the ITAT by the Department and suggest steps to reduce litigation before the ITAT after analyzing various aspects as mentioned in Para 7.
4. The Committee should examine the assessment orders, appellate orders and scrutiny report for the appeal to the ITAT related to orders selected as per guidelines mentioned in Para 5 below and give its recommendations for different income groups as defined in Para 6 separately for corporate and non- corporate assessees.
5. Guidelines to select orders:
(i) Sample should be drawn from the orders passed by the ITAT during the month of June, September, December and March of the FY 2013-14.
(ii) (a) Approximately 200 orders should be selected for study from each of the following 8 major cities: Delhi, Mumbai, Kolkata, Chennai, Hyderabad, Pune, Ahmedabad and Bangalore.
(ii) (b) Approximately 150 orders should be selected for study from each of the following stations: Chandigarh, Jaipur, Indore, Lucknow and Kochi.
(iii) As far as possible, orders in cases of corporate and non-corporate assessees should be selected in equal numbers, particularly in Metro charges whereas in non-metro, sample of non-corporate assessees may be larger. It must also be ensured that some orders in search cases are in select basket.
(iv) As number of appeals filed by the Department before ITAT is much larger than appeals filed by the assessee, the order in appeals filed by the Department and by the assessee may be selected in the ratio of 2:1.
6. Analysis should be done and conclusions be drawn separately by categorising assessment orders in various income groups (returned income) as under:
< 25 Lakh
25 Lakh to 1 Crore
1 Crore to 10 Crore
10 Crore and above
7. Within the overall terms of reference, an analysis on the following aspects should be conducted, along with any other that the Committee deems fit:
(i) Assessment Orders: Nature of additions made in general, guidance of supervisory authorities, sustainability of additions in appeal, quality of addition made and average tax effect of additions made in each category at Para 6 above.
(ii) Orders of CIT (A): Whether relief allowed is based on proper marshalling of facts and legal position. The decisions are also to be analysed in the light of the order of the ITAT.
(iii) (a) Authorization by CIT: The filing of second appeal is to be examined as to whether the same is filed mechanically by applying the monetary limits or on sound grounds after examining the merits of each order.
(iii) (b) The Committee should ascertain from the orders of each CIT (A) received during the FY 2013-14 by each administrative CIT under the jurisdiction of CCIT-I & CCIT-VIII Delhi, CCIT-I Ahmedabad, CCIT-II Hyderabad the percentage of appeals filed by the Department in ITAT where the tax effect exceeds monetary limits.
(iv) The success rate of appeals filed by the Department/Assessee before the ITAT to be analysed.
(v) The Committee must also take inputs on relevant issues from DRs in the stations mentioned in Para 5.
8. The Headquarters of the Committee will be in Delhi.

Source: www.taxmann.com

What to do ?, if you don't receive your Tax Refund.

First and foremost, congratulations! You are in an enviable position of being eligible for getting money back from the tax department instead of forking out taxes to them.

We can imagine how impatient you must be to receive your refund! So let’s get right down to helping you fix your problem and get your rightful cash back from the IT department.

Step 1: Check the status of your refund
ClearTax lets you check your refund status in just a click. Click here to check your status now.
Keep your PAN number and the Assessment Year for which you want to check refund status handy.

Step 2: Figure out what your refund status means
1.     No e-Filing has been done for this assessment year.
2.     Not Determined
3.     Refund Paid
Note: You may have received a “notice” explaining why  if you see one of these statuses
4.     No demand no refund
5.     ITR processed refund determined and sent out to Refund Banker
6.     Refund Unpaid
7.     Demand determined
8.     Contact Jurisdictional Assessing Officer

Step 3: Take appropriate action
Number
Reasons why your refund hasn’t reached you
Next Steps
1
You may have filed your returns in the physical form and not e-filed. There could be a lag in reconciling paper filings with e-filed returns, hence the delay
Be patient and wait for the IT department to reconcile their paperwork.

2
Your refund request is still being processed. The delay could be at 2 levels – the IT department itself is taking time to process your request
Be patient. The Income Tax department takes time to process refunds. Make sure you’ve sent the ITR-V within 120 days of e-Filing.
OR

Your request has been processed by the IT department and is stuck at the Refund Banker’s end.
Missed sending the ITR-V in 120 days? Then you need to only revise your return and send the new acknowledgement to CPC Bangalore.
3
Your address provided to the IT department is wrong, hence the cheque has not been delivered
Check out the Speed Post reference number for your cheque that is available on the NSDL – TIN website. Armed with this reference number, cross check with your local post office why the cheque hasn’t reached you yet.

If your address has changed since filing your IT return, you can correct it online via www.incometaxindiaefiling.gov.in or contact your Assessing Officer and inform them in writing about the change of address.

To find out who the Assessing Officer is, click on this link and quote your PAN number.
4
The bank account that you submitted to the IT department has changed, hence the refund hasn’t reached you
If your bank account has changed since the time you filed your returns, communicate the new account number and MICR code to your Assessing Officer. The AO will instruct SBI to issue a new cheque to the new account that you have registered with them.
To find out who the Assessing Officer is, click on this link and quote your PAN number.
5
You did not explicitly request a refund while filing your IT returns
Did you forget to include a certain deduction while filing?

You can still revise your return with the refund request included in it if your Income Tax Return hasn’t been processed yet.

Read ClearTax’s guide to revising your Income Tax Return.
6
Your refund request was found to be incorrect as per the IT department’s calculations, hence your refund has been rejected.
Remember, whenever the Income Tax Department begs to differ with the information you’ve provided, they will send you a notice explaining what exactly they have a problem with.

If you received a notice saying your refund was rejected, you still have an opportunity to file a rectification to support your refund claim. Contact the experts at ClearTax for help.
7
Your refund request has been rejected, in fact the IT department finds that you owe them unpaid taxes instead.
You can expect to receive a notice from the Income Tax Department regarding the exact amount of tax outstanding.

Cross check with your own records to verify that your original refund request was correct.

If it was, file a rectification supporting your refund claim. If you find that your refund request was indeed erroneous, pay the tax demanded by the IT department within the time limit mentioned in the intimation.
8
The IT department needs additional documentation from your end to process your refund request
On receiving such a message, contact the Assessing Officer for your region without delay.

To find out who the Assessing Officer is, click on this link and quote your PAN number.

You may contact your Assessing Officer via telephone or by post. However, in order to maintain a record of your actions, we recommend contacting your AO via post and requesting a written acknowledgment from them for the same.

 Source: www.in.finance.yahoo.com