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Issue ID: 116581
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Unclaimed Income Tax refund due to non filing of return

Date 27 Jul 2020
Replies 3 Replies
Views 2236 Views
TDS on exempt income: claim deducted tax by filing a return to obtain refund under routine return processing.
Advisers state the assessee should file an income tax return disclosing full income and its exempt status, show TDS paid in the return, and claim a refund; TDS on exempt income can be refunded through the return process, while the question of increased departmental scrutiny is noted but not authoritatively resolved. (AI Summary)

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.

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