[FAQs] ITR – Tax Payment | TDS | TCS | Refunds

  • Blog|Income Tax|ITR Week 2023-24|
  • 8 Min Read
  • By Taxmann
  • |
  • Last Updated on 5 July, 2023

The concept of TDS and TCS has been introduced to ensure regular flow of revenue to the Government. If any excess tax is paid then taxpayer is eligible to get refund. This write-up gives answers to your queries related to tax payment, TDS, TCS and refund.

TDS Refund

tds refund status

FAQ 1. Can I claim the benefit of tax deducted in advance on income that is taxable in subsequent years?

Certain provisions of TDS (including TCS) require deduction of tax at source at the time of payment or at the time of credit, whichever occurs earlier. Advance payments are also subjected to TDS. The Schedule of TDS/TCS in the ITR forms provides columns to fill in the information of tax deducted in previous years, but credit for the same is to be claimed in the future year. One cannot claim credit of TDS pertaining to income that is taxable in the subsequent year. Thus, such TDS credit can be carried forward to the subsequent year and can be claimed in the year income is offered to tax.

Dive Deeper:
Income Tax Returns (ITR) | Which ITR Form is to filed for AY 2023-24
[FAQs] Income Tax Returns (ITR) | Requirement to File ITR
[FAQs] Income Tax Returns (ITR) | Updated Returns
[FAQs] Income Tax Returns (ITR) | Reporting in Schedules in ITR
[FAQs] Income Tax Returns (ITR) | e-Filing of ITR
[FAQs] Income Tax Returns (ITR) | Annual Information Statement (AIS)

FAQ 2. I have claimed a tax refund by filing an income tax return, but it failed as I have mentioned an incorrect bank account number. How can I submit the correct bank account number?

You can submit your correct bank account number after selecting an option of refund re-issue. The procedure to apply for refund re-issue is outlined hereunder:

  1. Login to incometax.gov.in
  2. Go to ‘Services’ and select ‘Refund Re-issue’.
  3. Select ‘Create Refund Re-issue Request’.
  4. Select the record for which you want to submit request of refund reissue.
  5. Select the bank account where you would like to receive the refund.
  6. Click on ‘Proceed to Verification’ button.

Taxmann's Deduction of Tax at Source with Advance Tax and Refunds

FAQ 3. What to do in case of a TDS mismatch?

Credit for TDS as claimed in return may match with the balance appearing in the Form 26AS, but the Assessing Officer still raises demand for payment of the differential amount of TDS. The CBDT[1] has highlighted that such tax credit mismatches may happen due to the following mistakes:

  1. Invalid/incorrect TAN of deductor;
  2. Furnishing the same TAN for more than one deductor;
  3. Filing information in wrong TDS Schedules in the Return Form;
  4. Furnishing wrong challan particulars in respect of Advance tax, Self-assessment tax, etc.;
  5. Tax deducted by one deductor was wrongly included in the amount of tax deducted by another deductor.

Consequently, the tax credit could not be allowed to the taxpayers while processing returns despite the tax credit being available in Form 26AS statement. The CBDT, therefore, has directed the taxpayers to verify if the demand raised is due to tax credit mismatch on account of such incorrect particulars and submit rectification requests with correct particulars of TDS/tax claims for correction of these demands. The rectification requests have to be submitted to the jurisdictional Assessing Officer if such officer processed the return, or the taxpayer is informed by CPC, Bengaluru that such rectification is to be carried out by Jurisdictional Assessing Officer. In all other cases of processing by CPC, Bangalore, an online rectification request can be made in the following manner:

Step 1: Log in to the e-filing portal.

Step 2: Click on Services > Rectification

Step 3: On the next page, click New Request.

Step 4: Select the Assessment Year from the drop-down. Click Continue.

Step 5: On the next screen, select the option of ‘Tax Credit Mismatch Correction’ from the following types of Income-tax rectification requests:

  • Reprocess the return
  • Tax credit mismatch correction
  • Additional information for 234C interest
  • Status Correction
  • Exemption section correction
  • Return data correction (Offline)
  • Return data correction (Online)

tds mismatch rectification

Step 6: The schedules under this request type are auto-populated based on the records available in the corresponding processed return. If you need to edit or delete a schedule, select the schedule, then click Edit or Delete.

Step 7: Enter the correct details in the relevant schedules and click ‘Continue’ to submit the request.

tds mismatch rectification

On submission, you will be taken to the verification page.

Where TDS mismatch is due to an error in the TDS return filed by the deductor, you should approach the deductor to rectify the TDS return.

Dive Deeper:
[FAQs] Income Tax Returns (ITR) | Capital Gains
[FAQs] Income Tax Returns (ITR) | Deductions & Rebates
[FAQs] Income Tax Returns (ITR) | Set-off of Losses
[FAQs] Income Tax Returns (ITR) | Clubbing of Income
70+ FAQs on Income-tax Returns (ITR) for Assessment Year 2023-24

FAQ 4. How to claim TDS credit in ITR if deductor didn’t deposit TDS?

A taxpayer should approach his deductor and request to deposit TDS with Government and file a TDS statement. However, he has no legal power to enforce the deductor to do so. Thus, if the deductor has refused the taxpayer’s request, he can submit TDS proof to Dept.

The ITR forms are annexure-less, and hence, a taxpayer cannot attach any supporting documents along with ITR in support of the TDS claim. Thus, it is advisable to file ITR, claim TDS credit and wait for the processing of ITR. Once ITR is processed, the taxpayer will receive notice of TDS mismatch.

Upon receiving such notice, he can file a reply and supporting documents showing that the TDS has been duly deducted from his income. The taxpayer can submit the salary slips to support his claim. Further, he can submit the bank statement showing credit of net salary/other income after deduction of TDS.

AO may allow TDS credit to the taxpayer if the documents submitted are found correct and cancel demand raised by the CPC. However, if he doesn’t allow the TDS credit, the only option left before the taxpayer is approach Court.

It is essential to note Instruction No. 275/29/2014, dated 01-06-2015. The CBDT has directed that as per section 205 the assessee shall not be called upon to pay the tax to the extent tax has been deducted from his income where the tax is deductible at source under the provisions of Chapter- XVII. Thus the Act puts a bar on direct demand against the assessee in such cases, and the demand on account of tax credit mismatch cannot be enforced coercively. This may be brought to the nTDSotice of all the Assessing Officers that if the facts of the case so justify, the assessees are not put at any inconvenience on account of a default of deposit of tax into the Government account by the deductor.

(Read More: Can I claim credit of TDS deducted by the employer but not paid by it to Govt.? on taxmann.com/practice)

FAQ 5. I have a bank fixed deposit of Rs. 1,50,000. My total income (including accrued interest income on FD) is below the taxable limit. How to avoid deduction of tax on interest income?

You can file a self-declaration to the bank in Form 15H if you are a senior citizen. Otherwise, you can file a self-declaration in Form 15G.

Taxmann's TDS Ready Reckoner

FAQ 6. How to avoid deduction of tax if I earn interest income of Rs. 40,000 from saving deposits, and my total income, including such interest income, is below the taxable limit?

The tax shall be deducted from the amount of interest payable on time deposits if it exceeds Rs. 40,000. Any interest payable in respect of saving deposits shall not attract any TDS.

FAQ 7. My return has been processed, and it shows ‘Outstanding Tax Demand’. What should I do now?

A facility has been provided on the e-filing website to provide online responses to such demands. The actions required to be performed by the taxpayer are as under:

Step 1: Log in to the e-filing portal.

Step 2: Click Pending Actions > Response to Outstanding Demand to view a list of all outstanding demands. If you wish to pay the demand, click ‘Pay Now’ to pay the demand.

Step 3:  On the Response to Outstanding Amount page, click ‘Submit Response’ to submit a response to outstanding demand.  Depending on the scenario, you can go to the relevant section:

  • If the demand is correct, but you have not paid the tax
  • If the demand is correct and you have already paid the tax
  • If you disagree with the demand (in full or part)

If the demand is correct, you can submit that the demand is correct. On such selection, you will be taken to the e-Pay tax page, where you can make the tax payment. On successful payment, a success message is displayed along with a Transaction ID.

If demand is correct and you have already paid the tax, click ‘Add Challan Details’ and add the details of challan, Type of Payment (minor head), Challan Amount, BSR Code, Serial Number, and  Date of Payment. Click ‘Attachment’ to upload a copy of the challan (PDF). Click Save. On successful validation, a success message is displayed along with a Transaction ID.

If you disagree with the demand (in full or part), click ‘Add Reasons’. Select the appropriate reasons for disagreement, and enter the relevant details. Click Confirm to confirm your submission. On successful submission, a success message is displayed along with a Transaction ID.

Please keep a note of the Transaction ID for future reference.

FAQ 8. The income-tax department has raised a demand against Mr A for the Assessment Year 2022-23. He didn’t pay the tax demand and filed ITR for the next assessment year in which a refund was claimed. Whether such a refund can be adjusted against his pending tax demand?

The CBDT has empowered the CPC to adjust tax demand against the tax refunds due to the assessee. Thus, the refund claimed by Mr A can be adjusted with the demand standing against him for the Assessment year 2022-23.

FAQ 9. Whether I need to pay a fee under Section 234F if there is a delay in filing of income-tax return?

Fees under Section 234F is levied if the assessee does not furnish the return of income on the due dates prescribed under Section 139(1). The amount of such late filing fees shall be Rs. 5,000 if the return is furnished after the due date specified under section 139(1). However, if the total income of the person does not exceed Rs. 5 lakhs, then Rs. 1,000 shall be the late filing fees.

The late filing fee under Section 234F shall not apply to taxpayers where return filing is not mandatory and the taxpayer is filing such return of income voluntarily.

(Read More: Fee for default in furnishing return of income on taxmann.com/practice)

FAQ 10. I am a non-resident filing an Income-tax return in India. I don’t maintain any bank account in India. Can I get my tax refund in any foreign bank account?

The Income-tax department now allows payment of tax refund in the foreign bank account of non-resident taxpayers. Non-residents are required to mention the following details in the ITR form:

  1. SWIFT Code of Foreign Bank Account;
  2. Name of Bank; and
  3. International Bank Account Number (IBAN).

[1] Press Note No. 402/92/2006, dated 17-04-2014

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

4 thoughts on “[FAQs] ITR – Tax Payment | TDS | TCS | Refunds”

  1. For AY 2021-22 (FY 2020-21) I filed my ITR on 14.09.2021 well within the time limit of the extended date intimated by ITD.
    However, one of the Tax Deductors did not upload part of the TDS deducted by them before I filed my ITR on 14.09.2021 as a consequence of which I could not claim the TDS amount while filing my ITR as it was not reflecting in Form-26AS.
    He uploaded the TDS deducted much later and it was reflecting in Form-26AS only in Dec, 2021. In the meantime my ITR for AY 2021-22 had been processed by the ITD.
    How to claim this additional TDS deposited late by the Tax Deductor?

  2. I have raised invoice for service in FY 2021-22 and showing as my income. But the customer has booked the same in FY 2022-23 and deducted TDS for AY2023-24. Do I need to pay tax not? Can I claim TDS credit in advance?

    1. Hi Pankaj, There is no provision under the Income-tax Act that allow credit of TDS in advance. To claim the benefit of TDS, you need to ask the customer to revise his TDS return and show income in FY 2021-22. Once he revises the TDS return, you can file a revised ITR to claim the benefit of TDS.

Leave a Reply

Your email address will not be published. Required fields are marked *

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on Taxmann.com

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied