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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