We all know that we can claim a TDS Refund for last two years. However, you can also claim the refund for beyond six years by filing income tax return for last 6 AY. Income tax authorities in their circular no. 9/2015 has given the guidelines on how the taxpayer, who has failed to file ITR, can claim TDS Refund as per section 119(2) (B). He can make an application and get a refund due up to the last 6 AY.
Claim TDS Refund after 2 Assessment Years
If you have paid an additional tax or if the tax deducted was more than required, you can claim a TDS Refund for up to 6 years from the year of deduction. However, to claim a refund the taxpayer has to make a condonation application to the Principal Commissioner of Income Tax or Commissioner of Income Tax. He will evaluate the claim or may order the AO to check the genuineness of the claim. The commissioner has the power to accept or reject the application if the claimed amount is not more than Rs. 10 lakhs for anyone AY.
The Principal Chief Commissioner of Income Tax or Chief Commissioner has the power to accept or reject your application, if the amount of such claim exceeds Rs. 10 lakhs but not more than Rs. 50 lakhs for anyone AY. If the claimed amount is more than Rs. 50 lakhs, the Board will consider your application whether accepting or rejecting by examining it.
Steps to Claim Refund:
- First send the application to the Principal Commissioner, Chief Commissioner or CBDT as per the amount of the claim.
- You can file a condonation application for up to 6 previous years. You can even claim the loss to carry forward. However, the officer will ensure that the provided details are correct and genuine.
- The third step is clearance from authorities. The authorities will either accept or reject your application on the basis of examination. No interest shall be admissible on a belated claim of refund. One condition is that the income of an assessee is not assessable in the hands of another person under any provisions of the Income Tax Act. Also, the refund must have arisen due to the excess payment of advance tax or self-assessment tax or due to excess TDS deduction.
- You can also admit a belated application for the additional claim of refund for condonation. However, the conditions mentioned above must have been satisfied.
- Where the applicant, who has made investment in 8% savings bonds, 2003, issued by the government opting for the 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 TDS on the entire amount of interest; paid without apportioning the accrued interest/TDS, over various financial years involved; the time limit of 6 years for making claim refunds will not apply.
The Board holds power to examine any grievances arising out of order or not passed by the authorities and to issue suitable directions to them for proper implementation of this circular no 9/2015. The Board will not entertain any review or appeal against the orders of such authorities.
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