Seeking refund on Extra TDS wrongly deducted on 1 whole year

Respected sir, Good morning, Client "X" (generally living in bombay) left comp. "M" (place of work-Bharuch,Gujarat) in Sept 2007 & joined Comp. "N" in Dubai (on the salary of which client has to pay zero tax in Dubai) .Comp. M erroneously deducted full TDS (Rs1.8Lakh) of annual pay of FY 2008-09 alongwith TDS of 2007 salary & fully deposited it. On recognizing mistake, Comp. M cancelled the form 16 of 2008-09 & issued a certificate on July 2010 (1.5 yrs after relevant FY end) mentioning that it had erroneously deducted 1.8Lakh and that X is liable for refund. Although earnings from N are tax exempt , Client's advocate had filed E- return of 2008-09 showing 9lakh income and 1.8 lakh TDS for satisfaction of tax liability on such income ( there is no tax on income from Dubai comp). Now Client wants to obtain refund of 1.8 lakh. Till now he hasn't sent any application seeking such refund. As per CIRCULAR NO. 2/2011 [F. NO. 385/25/2010-IT(B)], DATED 27-4-2011 , time limit to seek refund is 2 yrs provided TDS certificate isnt issued & credit for the excess amount has not been claimed by the deductee in the return. Please clarify : 1) whether even after violating above circular conditions ( 2 yr time limit & showing TDS claim in return) Refund can be claimed (being constitutional right) without hassle? 2) Client lives in Mumbai, so for submission of application for refund will he be required to physically go to Bharuch IT dept or speed post it, or can he submit it in Mumbai IT dept ? 3) In enclosures of application seeking refund, apart from - Cancelled Form 16 from M, certificate showing M had erroneously deducted TDS & no such salary was paid during 08-09, Resignation letter from M, appointment letter in N, Form 16 equivalent of Dubai , Pay cheque of N, PF statement of 08-09 (to prove no PF deducted as no salary paid), Bank statement of 08-09, IT return; what else should be enclosed so that it is sufficient proof that TDS not liable & our case is strong? 4) What other procedures,measure etc would be reqd. Thank you.



Your are not logged in . Please login to post replies

Click here to Login / Register  


  Search Forum


  LAWyersclubindia Menu