TDS
Refund: Procedure for applying for Income Tax Refund
TDS is required to be deducted at the time of
making any payment and the TDS so deducted is deposited with the Income Tax Department
as tax deducted on behalf of the person to whom the payment is being made.
- Recommended Read: Rate
of TDS to be deducted while making payments
The TDS so deducted is allowed to be claimed as a
credit from the Income Tax Payable of the person whose TDS has been deducted.
The Balance amount of tax shall be tax payable/tds refundable. This can
be explained with the help of the following example:-
Total Tax Payable by Mr A for the year 2013-14*
|
50000
| |
(Less)
|
TDS deducted by Mr B while making payment to Mr A
|
-20000
|
(Less)
|
TDS deducted by Mr C while making payment to Mr A
|
-15000
|
Balance Tax Payable by Mr A
|
15000
|
*The total tax payable would be the self
assessment tax computed by the taxpayer himself by applying the income
tax slab rates on his total income.
The Balance shall be the tax payable by Mr A
which he would be required to pay before the due date of
payment of income tax.
However, in case the TDS Deducted is more than
the total tax payable, the excess amount deducted is allowed to be claimed as
TDS Refund. This can be explained with the help of the following example
Total Tax Payable by Mr A for the year 2013-14
|
40000
| |
(Less)
|
TDS deducted by Mr B while making payment to Mr A
|
-25000
|
(Less)
|
TDS deducted by Mr C while making payment to Mr A
|
-20000
|
TDS Refundable to Mr. A
|
5000
|
In the above case, as the Total TDS Deducted is
more than the Total Tax payable for the year, the excess amount deducted shall
be the TDS Refund which the income tax dept would be making to Mr. A
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