Instruction No. 5/2010 [F.No.225/25/2010-ITA-II], dated 21-7-2010
The issue of processing of returns for Asst. year 2009-10 and giving credit for TDS has been considered by the Board. In order to clear the backlog of returns, the following decisions have been taken:
(i) In all the returns filed in ITR-1 and ITR-2, for the Asst. Year 2009-10, where the aggregate TDS claim does not exceed Rs. Three lakh (3 lacs) and where the refund computed does not exceed Rs. 25,000; the TDS claim of the tax payer shall be accepted at the time of processing of the return.
(ii) In all the returns filed in forms other than ITR-1 and ITR -2, for the Asst. Year 2009-10, where the aggregate TDS claim does not exceed Rs. Three lakh (3 lacs) and the refund computed does not exceed Rs. 25,000 and there is 10% matching of TDS amount claimed, the TDS claim shall be accepted at the time of processing of the return.
(iii) In all remaining cases, TDS credit shall be given after due verification .
As per new rules,Tds claimed in the income tax return must be matched with data uploaded by the Deductor and data posted in form 26AS i.e, PAN ledger. Due to these instruction, many refund orders are pending without any fault of assessee. Moreover Income tax rule has not empower deductee to enforce deductor to file revised return or upload the original return so that mismatching can be removed .So department has issued a Internal Instruction to their officer to settle the small cases of refunds without matching the 100% tds details. New rules are reproduced hereunder.
Processing of returns of Assessment Year 2009-10 - Steps to clear backlog
(Thanks to Simpletax blog)
Similar instructions were issued for the FY 2008-09 also.
The Instruction reference is "Instruction No. 1/2010, dated 25-2-2010".
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