Reader's corner: How to check status of refund from income tax department

You will not be able to claim a credit of such TDS until the tenant completes the formalities

I had rented out my house. The tenant deducted tax at source or TDS before paying the rent. But he never deposited it with the income-tax authorities. It happened for the financial year ending March 31, 2018. I complained, and the authorities wrote to the tenants. Despite this, the status remains the same. How do I deal with this problem? 

Under Section 194IB of the Income-Tax Act, 1961, the tenant of the property is required to deduct TDS at 5 per cent on the rent paid in case the amount exceeds Rs 50,000 a month. If the tenant (assuming an individual taxpayer) does not deposit the deducted tax with the department and completes withholding compliances, the TDS will not get reflected under your PAN and in Form 26AS. You will, therefore, not be able to claim a credit of such TDS until the tenant completes the formalities. You may continue to highlight the default of your tenant to the tax authorities for an appropriate resolution.

You have not mentioned whether for the tax year 2017-18 you filed your return, including rental income. Once your tenant deposits the tax, you may opt to revise the filed 2017-18 return to claim the credit. Since 2017-18 return is time-barred now, you will have to approach the appropriate tax authority to file a revised return under Section 119. Refer to Circular number 9/2015 dated June 9, 2015, to know the process. You cannot claim credit of TDS of 2017-18 while filing your 2018-19 return.

For the first time in last assessment year, I was eligible for a refund from the income-tax department. Out of the Rs 16,000 that was due for refund, the department adjusted Rs 12,000 against some pending demand. I have not received the remaining money. In the Income Tax department's e-filing website, there's no tab to check the status after I log in. When I check at the NSDL website, I get a message that says "invalid PAN".

First of all, you need to carefully review the communication you received from the tax authorities intimating you about the adjustment of old outstanding demand of Rs 12,000 against the refund due to you. It is important to understand why this amount was outstanding.  If this demand is not erroneous and legitimately not due, you need to respond to them appropriately with documentary evidence so that demand can be deleted. Such rectification can be made electronically on the e-filing portal. Access your account through the e-filing portal and then go to e-File and select “Response to outstanding demand”. After that, submit an appropriate response towards the erroneous outstanding demand on the portal. Once the demand is deleted, a grievance request will need to be made under e-nivaran for the refund adjustment made by the authorities. Assuming you are not able to see the outstanding demand, approach your concerned assessing officer.

You have mentioned that your PAN is being shown as "invalid" on the NSDL site. In such a case, you will have to check with the TRACES helpline and send an email to contactus@tdscpc.gov.in. While sending the email, you need to attach your PAN card and screen shot of the error message on the NSDL website. The concerned NSDL person will contact you within four working days and will resolve the issue. If the above doesn't work, request you to kindly raise grievance request under e-nivaran in your e-filing portal raising your concern.

I have invested in the non-convertible debenture offer of a non-banking company. It gives me quarterly pay-outs. Under which head should I declare this income?

The quarterly pay-out, which we understand is interest, is taxed as any other interest income earned during the year. You need to add the quarterly pay-outs under the head "income from other sources" and offer it for taxation at the normal slab rate applicable to you.
 

The writer is partner and leader, personal tax, PwC India. The views expressed are the expert’s own. Send your queries to yourmoney@bsmail.in