TDS means Tax Deduction at Source. If TDS is deducted on interest, salary, rent etc. of bank deposits, then you would know that the way to withdraw it or get refund is to file Income Tax Return (ITR). But those who could not file ITR on time, how can they get TDS refund?
Income tax rules say that the taxpayer cannot refund TDS if the ITR is not filed by the deadline or within the stipulated time. However, this does not mean that all doors to getting TDS money are closed. Benefit of TDS refund, exemption, deduction is given under section 119(2)(b).
In fact, through section 119(2)(b), the Central Board of Direct Taxes directs the Income Tax Officers to provide the facility of such refund claim even after the expiry of the ITR period. However, this facility is given only if the taxpayer gives a valid reason for not filing ITR. In this, the officers are given the responsibility according to the amount of the claim.
If there is a claim of 10 lakhs in an assessment year, then the Principal Commissioner or Income Tax Commissioner can pass or reject that claim. The Principal Chief Commissioner has the right to settle the refund claim from 10 to 50 lakhs. If there is a claim of more than 50 lakhs, then the CBDT settles it at its level.
Understand this with an example. Ramchandra is a senior citizen whose TDS has been deducted on the interest of fixed deposits. Since his health deteriorated, he could not file ITR on time. In such a situation, they can file TDS refund claim with the tax officer.
How to fill refund claim
- For this, an application will have to be written in the name of the concerned tax officer, in which the reason for not filling the ITR will have to be given.
- In support of this application, the taxpayer will have to attach some necessary documents. For example, in case of ill health, a medical report will have to be given.
- If the tax officer needs any other document apart from this, then he will inform the taxpayer by sending a notice.
- Information about this notice will be displayed in the ‘Pending Action’ tab on the e-filing portal. From there the notice can be checked.
- If the application is approved, then online ITR will have to be filed by going to the e-filing tab under section 119(2).
- If the Income Tax Department rejects the application of the taxpayer, then a petition will have to be filed in the High Court.
- A similar refund facility is provided on the e-filing portal for filing claims under the ‘Condonation Request’ tab.
- Going to the Consolidation Request tab, select the ‘Allow ITR filing after time bar’ tab and file the ITR.
- The taxpayer gets up to 6 years for such refund claim, which can be filed in a period of up to 6 years from the assessment year.
