Refund of TDS u/s 195

[Gopi Krishna]

There are instances when due to bonafide human error either, tax deducted u/s 195 is more than what is deductible or tax remitted is more than what is deducted. In such situations there is presently no option for the deductor to claim refund of tax deducted or remitted more. This is so because circular no: 285 dtd 21/10/80 issued by the CBDT applies to claims of only excess remittances of tds made u/s 192 to 194D. As regards sec 195, there is of course a circular issued by the CBDT(no:790) but that does not cover any of the situations described above. Therefore a deductor who by mistake has remitted excess u/s195 stands to lose whereas the one who faces a similar situation u/s 192 to 194D is benefited. I think the board should be apprised of this matter so that genuine case can be redressed. 

[sivaiah G]

There is one more circular with regard to issuance of refund when excess TDS is deducted ie. no. 769. Further, Circular no. 790 is followed by circular no. 7/2007. I think there is a solution to your problem in this circular. If, not this should be brought to the notice of CBDT so that appropriate instructions will be issued.