CBDT Instruction On Grant Of TDS Credit For AY 2011-12

Instruction No. 4/2012 [F. No. 225/34/2011-ITA.II], dated 25-5-2012

The Board has decided to withdraw Instruction no. 01/2012 issued on 2nd February, 2012 on the subject above with immediate effect. The following decisions have been taken in this regard:

(i) In all returns (ITR-1 to ITR-6), where the difference between the TDS claim and matching TDS amount reported in AS-26 data does not exceed Rs. Five thousands, the TDS claim may be accepted without verification.

(ii) Where there is zero TDS matching, TDS credit shall be allowed only after due verification.

(iii) Where there are TDS claims with invalid TAN, the TDS credit for such claims is not to be allowed.

(iv) In all other cases TDS credit shall be allowed after due verification.

8 comments on “CBDT Instruction On Grant Of TDS Credit For AY 2011-12
  1. Joy says:

    What thanks, Mr. Jain, when CBDT has withdrawn earlier Instruction No. 1 of 2012 dated 02.02.2012, and consequently has reduced the mismatch relief amount from Rs. 1 lac to Rs. 5,000/-. This will only cause greater harassment to tax payers.

  2. Taxman says:

    Do you really feel this is an useful instruction?

  3. Narayan Jain says:

    The CBDT deseres thanks for the new Instruction dated 25.5.2012 on allowing credit for TDS. It should be made applicable on other assessment years also.

    However in the interest oif equity and justice, even where there are TDS claims with invalid TAN, the TDS credit for such claims should not be denied. It should be considered by CBDT afresh and after verification. the claim should be allowed in such cases also.

    Narayan Jain,
    Secretary General,. All India Federation of Tax Practitioners

  4. arvind says:

    Dear sir
    It is a great pity that the hard earned money paid by the taxpayers in the form of TAX is wasting lavishly. Now, CBDT has decided to infuse minimum of Rs. 20 Lacs on setting up each Aayakar Seva Kendra. But we should know the relevancy of it. As all of you know that the e-filing of Audited and company cases are mandatory. It means all the business cases are Efiled which constitutes about 35% of the total number of tax payers.
    Further taxpayers having salary income below Rs.5 Lacs are not required to file their return. Which constitutes about 45% of the total number of tax payers. About 5% of assessee filed their return as E-return on Internet.
    Rs. 20 Lacs are wasting on only 15% of assessee and their number are also decreasing day by day. I don’t think there is any need to start such an expensive scheme like AAyakar Seva Kendra. Thanks
    Jan Hit me jari

  5. ram babu B.Com says:

    These instructions ‘help’ like stock market tips in the TV interviews.
    Thanks for the trouble taken by the Board.

  6. Taxman says:

    What is due verification? This has not been defined since the first instruction on this matter, which is causing anxiety among AOs as well as taxpayers. The CBDT conveniently wants to make the AO foul guy by wording these so called relief instructions in a vague manner. It is high time the CBDT sets out a procedure for “due verification”. Otherwise these ridiculous instructions are of no use for mitigating the woes of taxpayers and also AOs. E-filing and CPC became laughing stock among the public and it is leading to big ticking time bomb due for explosion at any time. Thankfully the Delhi High Court is intervening at the right time. I hope the CBDT will be taken to task for ignoring this serious issue causing harassment to taxpayers as well as AOs.

  7. Sridhar says:

    CBDT instructions and actual implementation by CPC are always at variance.CPC has become another layer between the jurisdictional officer and the assessee. Many a time CPC refers back to jurisdictional officer of IT in respect of TDS refunds without application of mind

  8. blsarda says:

    It is observed that in manycases CPC overlooks 26AS and do not give credit even for TDS/Tax payments shown in 26AS.

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