TDS claim may be accepted without verification if difference is less than 5000


Income tax department issued new rules about tax deduction at source. In these rules the main attraction is if the difference between TDS claim and matching tds in form 26AS is less than 5000 rupees, the TDS claim will be accepted without any verification. Income tax department issued instruction no. 4 dated 25-05-2012 about these new rules. Full instruction is as follows.


SECTION 143 OF THE INCOME-TAX ACT, 1961 - ASSESSMENT - GENERAL - PROCESSING OF RETURNS OF A.Y. 2011-12 - STEPS TO CLEAR BACKLOG - WITHDRAWAL OF INSTRUCTION NO. 1/2012, DATED 2-2-2012
INSTRUCTION NO. 4/2012 [F. NO. 225/34/2011-ITA.II], DATED 25-5-2012

The Board has decided to withdraw Instruction no. 01/2012 issued on 2nd February, 2012 on the subject above with immediate effect. The following decisions have been taken in this regard:

 (i)  In all returns (ITR-1 to ITR-6), where the difference between the TDS claim and matching TDS amount reported in AS-26 data does not exceed Rs. Five thousands, the TDS claim may be accepted without verification.

(ii)  Where there is zero TDS matching, TDS credit shall be allowed only after due verification.

(iii)  Where there are TDS claims with invalid TAN, the TDS credit for such claims is not to be allowed.

(iv)  In all other cases TDS credit shall be allowed after due verification.
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