Oops, Missed a TDS Claim? Here’s How You Can Still Claim It!
Query 1]
I have filed my income tax return for the FY 2021-22 on 12.08.2022 with commission income of Rs. 12 Lakh & Interest & other income of Rs. 2.69 Lakh. At the time of filing the income tax return, total TDS of Rs. 41,000/- was claimed as per Form No. 26AS at that time. One payer has informed me that he has deposited TDS of Rs.26,000/- now. I have again checked Form No. 26AS which is now showing TDS of Rs. 67,000/- (i.e., Rs. 26,000/- additional amount now deposited by the deductor). I have been told that I cannot revise my income return now? How can I get the credit for this amount now? Is it gone now? Please help.
Opinion:
First of all, don’t worry — you’re not the only one who’s had this annoying experience in TDS. There are often instances where taxpayers missed to claim TDS credit for the reason that it was there in 26AS at the time of filing. There are also instances of non-claim in the ITR filed due to inadvertence or mistake. In all such cases, though the TDS amount ultimately forms the part of the database of the income tax department (i.e., in Annual Information Statement – AIS or in 26AS), the credit for the same is not claimed in the ITR. That raises the important question, how to receive credit for TDS in such situations?
Typically, TDS credit can only be granted if claimed in the ITR. However, there are exceptions outlined below:
1. Filing a Revised Return – Great if You’re Early:
If you’d spotted this before 31st December 2022, you could have filed a revised returnand claimed the extra TDS. Sadly, this window shuts 9 months after the financial year ends. Since we’re past that, this route is not available now.
2. Updated Return: Good for Extra Income, Not just for extra TDS:
If the taxpayers notice an error not only in claiming TDS credit but also in offering the income in ITR then the taxpayers have an option to file Updated ITR with additional income & TDS. The option is available up to 4 years after the end of the relevant AY & can be used only if the taxpayers have additional income to offer for taxation. No refund can be issued under this option but TDS can be adjusted against additional tax liability due to additional income. If the person has already offered the income for taxation in the original ITR and merely wishes to claim the TDS credit then this option is of no use. In your case, it appears that the TDS of Rs. 26,000/- is related to the commission income of Rs. 12 Lakh which is already included in the ITR filed earlier. If so, this option is also of no use to you.
3. Your Emergency Exit: Section 119(2)(b) to the Rescue!:
a) The option to claim TDS credit by filing revised return or updated return has its limitation as it cannot be filed after a certain prescribed period.
Now here’s your real savior in such cases: Section 119(2)(b)of the Income Tax Act. Think of it as the emergency door for taxpayers who missed a deduction, exemption, or refund due to genuine hardship or unavoidable circumstances.
b)When option under section 119(2)(b) can be used?
i)TDS wasn’t credited in time but now reflects in 26AS
ii)You missed claiming a deduction or refund due to oversight or delay
iii) You paid tax on exempt income by mistake
iv)Even if you didn’t file an ITR (say, your income was below the basic exemption), you can still apply for a refund under this section.
c) Who are empowered to give permission under section 119(2)(b)?
For using this option, taxpayer would need to take the
permission from following:
– Up to ₹ 10 lakh: Jurisdictional Commissioner or Pr. Commissioner
– ₹10 lakh– ₹ 50 lakh: Principal Chief Commissioner
– Over ₹ 50 lakh: Directly with the CBDT
d) Time Limit:
Condonation for claims can be filed up to six years from the end of the relevant Assessment year.
e) How to Apply under Section 119(2)(b):
i)Draft a simple application(no prescribed format) directly to the above referred tax authorities or to the jurisdictional tax authorities.
ii)Mention clearly that it’s a condonation requestand explain why the claim couldn’t be made earlier.
iii) Prove the hardship — not with drama, just facts and genuineness of the case.
iv)If approved, you’ll be allowed to file a belated ITR onlineunder Section 119(2).
[The Income Tax portal provides an online ‘condonation request’ facility under the ‘Services’ tab for filing a claim, but the specific tab mentioned is not yet updated on the portal.]
To Sum Up: Missed TDS after ITR filing? Here’s what you can do:
Revised Return: Not available after 31st Dec 2024. Updated Return: Only for extra income – doesn’t apply to you.
Section 119(2)(b): Your best and only bet.
[Views expressed are the personal view of the author. Readers are advised to seek professional advice before taking any decisions. Readers may forward their feedback & queries at nareshjakhotia@gmail.com. Other articles & response to queries are available at www.theTAXtalk.com]
