INSTRUCTION NO. 1/2010[F. NO. 225/25/2010/ITA(II)], DATED 25-2-2010

SECTION 143 OF THE INCOME – TAX ACT, 1961 – ASSESSMENT – GENERAL – PROCESSING OF RETURNS OF ASSESSMENT YEAR 2008-09 – STEPS TO CLEAR THE BACKLOG

INSTRUCTION NO. 1/2010[F. NO. 225/25/2010/ITA(II)]DATED 25-2-2010

The issue of processing of income-tax returns for the assessment year 2008-09 and giving credit for TDS has recently been considered by the Board and following decisions have been taken, in order to clear the backlog of returns pending for processing:

(i) In all the returns filed in ITR-1 and ITR-2 for the assessment year 2008-09, where the aggregate TDS claim does not exceed Rs. four lakh and where the refund computed does not exceed Rs. 25,000; the TDS claim of the taxpayer concerned should be accepted at the time of processing of return.
(ii) In all the returns filed in forms other than ITR-1 and ITR-2 for the assessment year 2008-09, where the aggregate TDS claim does not exceed Rs. four lakh and the refund computed does not exceed Rs. 25,000, and there is 70 per cent matching of TDS amount claimed, the TDS claim of the taxpayer concerned should be accepted at the time of processing of return.
(iii) In all remaining cases, TDS credit shall be given after due verification.

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