TDS Credit - CBDT Withdraws Instructions
BY Instruction No. dated 02.02.2012, the CBDT had stipulated that:
(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. One lac, the TDS claim may be accepted without verification.
(ii) Where there is zero TDS matching, TDS credit shall be allowed only after due verification. However, in case of returns of ITR-1 and ITR-2, credit may be allowed in full, even if there is zero matching, if the total TDS claimed is Rs. Five thousand or lower.
(iii) Where there are TDS claims with invalid TAN, TDS credit for such claims are not to be allowed.
(iv) In all other cases, TDS credit shall be allowed after due verification.
Now, the Board has decided to withdraw the above instructions and the fresh instructions are:
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.
What is “due verification” and how is it to be done?
CBDT Instruction No. 04/2012, Dated: May 25, 2012