1093 (Income tax) Can taxpayer take tax credit even if TDS has been deducted against wrong section? Project - Make Knowledge Free Case Methodology - Harvard Case Model Video Link - https://youtube/watch?v=zXCfy2fvjDw Narration - By Amlan Dutta Lets simulate a case study ...in the year 2013 14 , say i earnt 100 Rs from salary from BHEL , 100 Rs FD interest income from Axis bank , 100 Rs consulting fees from Boston Consulting Group ! Now , this are different expense heads ....BHEL for salary expense will deduct TDS under section 192 as per income slabs 0 rs because my total income is below threshold limit ...Axis bank will deduct on interest expense other than securities deduct TDS under section 194 A @ 10 % i.e 10 Rs on 100 Rs expense whereas Boston consulting group will deduct tax under section 194 J @ 10 % i.e @ 10 % i.e 10 Rs on 100 Rs expense However , what happens is BHEL deducts TDS under section 194 J @ 10 % , rest do their job properly ...the case is whether i can claim tax credit for 10 Rs deducted by BHEL deducted against wrong section 194 J The answer is no ...you as a a taxpayer is required to know to check it against your tax credit statement and know that the TDS deducted should be against salary TDS section only ...as soon as you spot something wrong , you must immediately take up with the deductor (BHEL) in this case and ask them to revise their TDS returns (24 Q) against incorrect TDS section and deduct against proper TDS section 192 in their salary return 24 Q mapped to your PAN (AIJPD6751A) once they do revise properly , it will start reflecting in my form 26 AS and now i can claim credit as reflected in 26 AS because everything is proper ...now when i file my return , my assessment wont wont pose problems because i have taken tax credit as per rules and correctly done by the deductor ! Had i not done this and claimed tax credit , understand what would have happened ... I couldnt claim salary TDS credit because thoiugh deducted against salary , it was done under section 194 J which is TDS against non salary , so where would i fill such TDS credit ...i cant obviously do it in salary and infact if thought of deeply , i cant fill it anywhere until deductor deducts properly against proper section... If deductor revises /deducts properly , everything falls in place and so there is no problem ... Hopefully this makes sense , Cheers , Amlan Dutta
Posted on: Sun, 21 Dec 2014 13:10:54 +0000
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