Home » Refund of excess TDS » Refund of Excess TDS Paid : Circular 2/2011

Refund of Excess TDS Paid : Circular 2/2011

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CIRCULAR NO. 2/2011 [F.NO. 385/25/2010-IT(B)], DATED 27-4-2011

If a deductor has deposited excess amount of TDS , the procedure for getting refund was given in Board Circular 285 dated 21-1-1980. Now CBDT has issued new circular in this respect.

  •  This Circular 2/2011 is issued in  suppression of  circular No 285 / 21-10-1980
  • It covers TDS sections 192 to 194LA
  • It does not cover TDS on non-resident payments i.e. section 192, 194E and 195 ( which are  separately covered by circular No. 7/2007)
  • It covers refunds for the period upto 31-03-2010 .
  • Refunds for period thereafter will be covered under provision of section 200A which prescribes processing of TDS Statements

Excess to be refunded :

The excess payment to be refunded would be the difference between:

  •  the actual payment made by the deductor to the credit of the Central Government; and
  •  the tax deductible at source

Excess payment discovered during financial year

In case such excess payment is discovered by the deductor during the financial year concerned, the present system permits credit of the excess payment in the quarterly statement of TDS of the next quarter during the financial year.

Excess payment discovered after financial year

  • In case, the detection of such excess amount is made beyond the financial year concerned, such claim can be made to the Assessing Officer (TDS) concerned.
  • However no claim of refund can be made after two years from the end of financial year in which tax was deductible at source.

Safeguards to avoid double claims

To avoid double claim of TDS by the deductor as well as by the deductee, the following safeguards must be exercised by the Assessing Officer concerned:

The applicant deductor shall establish before the Assessing Officer that:

(i) it is a case of genuine error and that the error had occurred inadvertently;

(ii) that the TDS certificate for the refund amount requested has not been issued to the deductee(s); and

(iii) that the credit for the excess amount has not been claimed by the deductee(s) in the return of income or the deductee(s) undertakes not to claim such credit.

Prior  approval of the Additional Commissioner  is required for refund in excess of Rs. 1 Lakh

Prior  approval of the  Commissioner  is required for refund inexcess of Rs. 10 Lakhs

After meeting any existing tax liability of the deductor, the balance amount may be refunded to the deductor.


  1. munni devi says:

    sir i am sell my house in feb 2014 and tds on sale on properrty is deposite to the bank but due to some reason purchaser canceell the deal and demand to refund of tds which already deposit.what is the procedure to refund the same tds due to cancell of the deal

  2. SAGAR YESHI says:

    fill from 26B for excess tds refund

  3. Sanjeev Kumar says:

    Dear Sir, I have paid wrongly amount of Rs 11206/- on dated 06/09/2012 in the account of 194C which is excess amount because we have not any dues against our TDS payment. Now I want to take refund this money please guide me what is the procedure to take refund this money.

  4. DINESH.V.MAHALE says:


  5. Kishan Singh Manral says:

    i have paid some amount wrongly of F.Y 2012-13

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