Unclaimed Income Tax refund due to non filing of return

[Rajat Singhania]

Assessee had not filed Income tax return for the F.Y. 2017-18 on which there was a certain amount of TDS deducted. Assessee enjoys exemption on entire taxable income u/s 10(26) and hence there is no tax payable in assesse's case. Can this unclaimed TDS be shown in the return of F.Y. 2018-19 and the refund be claimed. If so, will that make the assessee more susceptible to receiving notice by the Income tax Department.

AI Summary

Claiming TDS Refund for FY 2017-18 Under Income Tax Act Section 10(26) Without Attracting Scrutiny An individual inquired about claiming a tax refund for TDS deducted in the financial year 2017-18, despite not filing a return for that year due to their income being exempt under Section 10(26) of the Income Tax Act. They asked if this unclaimed TDS could be included in the return for the financial year 2018-19 and whether doing so might lead to scrutiny by the Income Tax Department. An expert advised that filing the return with the exempt income and TDS details would automatically result in a refund without necessarily attracting a notice.