double remittance of TDS on property purchase- refund issue

[Balaji G]

In March 2022, a property purchase involving four buyers and six sellers was completed in Bangalore. Due to a clerical error, one of the buyers submitted a single TDS Challan instead of six individual Challans for his purchase value. Upon realizing the mistake and consulting the TDS department for rectification or refund, he was advised to file six fresh Challans and pay the TDS again, then request a refund. The buyers complied in September 2022, paying an additional Rs. 1.75 lakhs and requested a refund for the double payment.

Instead of a resolution, six demand notices with penalties and interest charges were issued, citing delayed payments. Multiple follow-ups and correction requests through TRACES have not resolved the issue. The TDS department claims there are outstanding dues on the PAN, preventing resolution. However, the Income Tax Assessment officer confirms no dues against the PAN, and the assessee has filed his IT returns for the next three years, receiving refunds on regular salary-based TDS returns.

Both the TDS department and the Income Tax department claim they are unable to resolve the issue due to lack of access. Additionally, the grievance portal of TRACES (request for resolution) does not offer any option that closely resembles this problem so could not upload there too. how to go about this.

[Padmanathan KV]

Take it up with CPGRAMS for resolution.

[Padmanathan KV]

Also consider statutory remedies such as an appeal. You can easily prove the bona fides of the case using the previous challan and the new challans.

AI Summary

Double TDS remittance: refund dispute requiring grievance petition or statutory appeal to secure adjustment and rectify challans. Double remittance resulted from a clerical error where one buyer filed a single TDS challan instead of separate ones; after paying corrective challans and requesting refund, the TDS unit issued demand notices with penalties despite income-tax records showing no dues. Administrative rectification via TRACES failed; recommended remedies include CPGRAMS complaint and pursuing statutory appeal, supported by original and corrective challans to prove bona fides and secure refund or adjustment.