| Question And Answer | |
|---|---|
| Subject: | TDS from dividends U/s.206AA |
| Category: | Income-Tax |
| Querist: | G.K. Sureka |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | credit for TDS, Dividend, TDS mismatch |
| Date: | August 4, 2021 |
From FY 2020-21, dividends declared by Indian companies have become taxable and the companies are required to deduct tax at source from such payment.
However, in many cases, especially where shares are held in physical form, the shareholders could not furnish the PAN number timely and consequently, the companies have deducted the tax u/s. 206AA of the Income tax Act, 1961.
Now the tds so deducted is not appearing in Form 26AS and hence, the shareholder is not able to claim credit of the tds amount. This is despite subsequently intimating the PAN to the Company and requesting for uploading the same on income tax website.
Whether the tds so deducted is lost and gone for the shareholder? Is any procedure prescribed by CBDT to claim such tds? Thanks in advance.
This is a case of TDS mismatch. It is advisable to the taxpayer to first intimate the payer about the non-reflection of tax deducted at source and request for a TDS certificate.
Upon receipt of the certificate, the taxpayer may claim the credit of TDS even though the same is not reflected in Form 26AS.
In the event the return is not accepted under section 143(1) of the Act, a rectification application under section 154 of the Act may be made against the order under section 143(1) of the Act, wherein the certificate may be produced before the Department.