Re: Credit for TCS / TDS
An assessment was made u/s 144 read with s.147 as the assessee did not file any return nor complied to any notices. While determining tax payable the AO did not allow credit for TDS and TCS. The rectification application filed u/s 154 to allow credit is not considered verbally saying that the TCS / TDS is not being allowed to be given credit to in case where no return is filed. The assessee filed VsV declaration for full tax demand and accordingly Form 3 has been issued asking full payment of taxes. When filing Form 4 here also the assessee is not allowed to make claim of credit for TDS / TCS as it allows furnishing details of paid challans only. What is the remedy available to the assessee is such a case ? Kindly guide. Thanks
The assessee can move the rectification application before the Designated Authority. The Designated has the power to rectify and issue fresh demand . Alternatively pay the tax demanded by the designated Authority and claim refund of TDS and TCS form the tax Department or file writ before the High Court .
The declarant seems to have filed with FULL DEMAND.FORM 3 has been issued accepting the same.Now the quantum of TDS/TCS is determinable of whether the cost -benefit in settling the issue.
Usually sec 148 proceedings are in favour of department and in a refund scenario are dropped.However the nexus of TDS/TCS with assessed income demands credit be allowed and AO order of 154 would be helpful in DA amending patent errors in form 3.The CBDT CIRCULAR HINTS FOR THAT.TWO months be utilised for correction or amendment.