1. What is Tax Deducted at Source (TDS)?
Tax Deducted at Source (‘TDS’) is a form of income-tax which is deducted from any sum payable such as rent, commission, professional fees, salary, interest etc. by the persons making such payments. The concept of TDS was introduced with an aim to collect tax from the very source of income.
Under the Income-tax Act, 1961 (‘the Act’) a person (deductor) who is liable to make payment of specified nature to any other person (deductee) shall deduct tax at source and remit the same into the account of the Central Government.
2. Who is Liable to deduct TDS?
Individual and HUF are liable to deduct TDS, if total sales, gross receipts or turnover from the business or profession exceed one crore rupees in case of business or fifty lakh rupees in case of profession during the financial year immediately preceding the financial year in which such interest on loan or fees is credited or paid, under section 194A and 194J of the Act respectively (we have considered TDS implication under section 194A and 194J of the Act as generally these sections would apply in case of lending transactions. However, other TDS sections may also become applicable depending upon the nature of transaction for which it is requested to consult your tax advisor).
Every person other than Individual and HUF is liable to deduct TDS u/s 194A of the Act on Interest other than Interest on Securities and u/s 194J TDS on Technical and Professional Fees.
Please note above information is provided as a general information and does not constitute tax, legal, or other professional advice and must not be used as such. Please consult your professional advisor(s) if you have any questions regarding the above.
3. Who is Eligible to claim TDS Refund from Edelweiss Retail Finance Limited(Company)?
Following persons are eligible to claim TDS refund from Edelweiss Retail Finance Limited
(i)who is liable to deduct TDS as per the Act;
(ii)who has deposited TDS with Government;
(iii)who has Correctly filed its TDS return (by tagging the PAN of Edelweiss Retail Finance Limited with the TDS payment) as per the time limits as per the provisions of the Act; and
(iv)On submission of Form 16A (from TRACES website) within prescribed time limit.
Just to clarify, all the conditions have to be fulfilled,
On correctly filing the TDS return, the TDS credit will be reflected in Form 26AS of Edelweiss Retail Finance Limited and Form 16A (from TRACES) will be generated.
TDS return has to be correctly filed means
(i)depositing TDS in correct assessment year,
(ii)tagging PAN of Edelweiss Retail Finance Limited with the TDS payment in the original TDS return filed,
(iii)filing of original TDS return as per the time limits under the Income Tax Act (without extended timelines), and
(iv)submission of Form 16A from TRACES.
All the conditions have to be fulfilled.
4. On which amount TDS is to be deducted and at what rate?
TDS is to be deducted on the interest on loan and/or fees being paid to Edelweiss Retail Finance Limited. Please use latest Repayment Schedule for payment of TDS to avoid any short/excess deposit of TDS on Interest.
TDS is to be deducted at the rate prescribed under the Income-tax Act, 1961, TDS on Interest on Loan as per Section 194A and TDS on Fees as per section 194J.
5. What are the documents required for TDS refund?
TDS Certificate generated and downloaded from “TDS Reconciliation Analysis and Correction Enabling System” or TRACES Portal) along with covering/request letter mentioning Loan Account No. and details of interest paid and TDS amount – month wise needs to be submitted by the customer.
Please check and ensure that Form 16A / TDS certificate obtained from the TRACES Portal has the name, address & PAN of the Edelweiss Retail Finance Limited.
6. Is there a covering letter format?
Any formal covering letter mentioning Loan Account No. and details of interest paid and TDS amount – month wise would be accepted.
7. What is the Turnaround Time (TAT) for TDS refund?
Post acknowledgement of documents received from the customer, the refund will be initiated, and the payment shall be made within 15 to 20 days, Customer shall be notified by email alerts on their registered email id.
8. Where will I receive the payment?
TDS Refund amount shall be processed to the designated bank account from where ECS is effected by customer.
9. I have not paid the EMI, can I still claim TDS Refund?
No. You must settle all EMI dues till date to get the TDS Refund.
10. What is the process to claim TDS Refund?
Customers can submit the request for TDS refund via email or through the online portal
- Process for submitting TDS refund via email– Digitally signed TDS certificates (generated from the TRACES Portal) in Form 16A along with scan copy of formal covering letter mentioning Loan Account No. and details of interest paid and TDS amount – month wise to be emailed to firstname.lastname@example.org
- Through the Online Portal– Digitally signed TDS certificates (generated from the TRACES Portal) in Form 16A along with scan copy of formal covering letter mentioning Loan Account No. and details of interest paid and TDS amount – month wise to be Uploaded on this Link – https://www.edelweissretailfin.com/apply-tds/
- Submit the TDS certificate (generated from the TRACES Portal) in Form 16A in original duly stamp and signed along with formal covering letter mentioning Loan Account No. and details of interest paid and TDS amount – month wise to your nearest branch or
- Send the TDS certificate (generated from the TRACES Portal) in Form 16A in original duly stamp and signed along with formal covering letter mentioning Loan Account No. and details of interest paid and TDS amount – month wise to Head Office where it is centrally processed.
TDS Refund Team
Edelweiss Retail Finance Ltd.,
Ground floor, Tower 3 Wing B
Kohinoor City, Kirol Road,
Kurla West, Mumbai 400070.
11. Timelines to Submit TDS certificates in Form 16A to Edelweiss Retail Finance Limited.
TDS certificates along with request letter must reach Edelweiss Retail Finance Ltd TDS Refund Team by following dates:
- On or before 30th September for the TDS paid quarter ending on 30th June.
- On or before 31st December for the TDS paid quarter ending on 30th September.
- On or before 31st March for the TDS paid quarter ending on 31st December.
- On or before 31st July for the TDS paid quarter ending on 31st March.
12. What is the implication of late submission of TDS return filing and providing certificates in Form 16A to Edelweiss Retail Finance Limited beyond prescribed time limit?
In the event of non-adherence to the above-mentioned timelines in point no. 11, Edelweiss Retail Finance Limited is not obligated to make the TDS refund. Further, in such cases, Edelweiss Retail Finance Limited will be liable to refund the TDS only post obtaining the refund of such TDS from the income-tax department.
13. Are there any additional charges levied by Edelweiss Retail Finance Limited for processing the TDS refund?
14. How will I get notified about the receipt/approval/rejection of my request for TDS refund?
The Company shall notify the customer by email on their registered email id:
- For receipt/approval mentioning expected date of payment.
- For rejection giving reason thereof.
15. What shall be reason for rejection for TDS refund?
Reason for Rejection
- TDS return not filed correctly (refer point no 3 – where it is defined)
- TDS return filed in wrong PAN/Company
- TDS return filed after due dates prescribed in point no. 11 above
- If TDS certificate is not one generated from the Traces Portal as required by the Act read with the relevant rules
- If the case is in Days Past Due(DPD) i.e. if any pending dues is not paid to Edelweiss
- Duplicate certificate i.e. certificate given for already processed certificate.