INCOME TAX

Processing of returns of A.Y. 2008-09 - Steps to clear the backlog

Instruction No. 1/2010

Dated 25-2-2010

The issue of processing of I.T. returns for the A.Y. 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 A.Y. 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 tax payer 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 A.Y. 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% matching of TDS amount claimed, the TDS claim of the tax payer concerned should be accepted at the time of processing of return.

iii) In all remaining cases, TDS credit shall be given after due verification.