My relative received the final settlement benefits after her husband died in harness while working in a Central government organisation. The amounts were made as two fixed deposits for a period of 10 years in a public sector bank — one in her name and another jointly in the names of her two sons, a minor and a major, in May 2011. She is a housewife with no other income and the yearly 15G form was submitted to the bank.

However, on the maturity date, it was noticed that TDS was deducted by the bank on the interest amount. When TDS certificate was sought the bank expressed inability to trace the year in which the tax was deducted, since there was a merger of bank and lack of data at their end, except furnished details of a portion of the tax deducted during 2011-12. She didn’t verify her yearly 26 AS nor was she filing yearly ITRs, since she has no assessable income. Please clarify whether for the portion of TDS detected in 2011-12, she can file ITR now and claim refund. Also, please advise in respect of the TDS which was remitted by the bank to IT department. Is there any other way she can claim refund directly from the department?

Sitaram Popuri

Any tax deducted and deposited to the tax office would need to be claimed as a refund by filing a tax return within the prescribed timelines. Income Tax Act provides a timeline within which tax returns need to be filed. Though belated filing is allowed, it needs to be done within a specific period. Since these were taxes deducted and deposited in financial year 2011-12, it is not possible to file the tax return for this FY or claim the refund. There is an option to file a condonation request within six years from the end of the assessment year. It cannot be availed in the instant situation as the claim is over six years.

The writer is Partner, Deloitte India

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