For Re 1 TDS mismatch, I-T withheld Vodafone’s Rs 374 cr; court orders refund

In a major relief for telecom major Vodafone Idea Limited, the Bombay High Court has directed the Income Tax department to refund to the company Rs. 374.26 crore that was withheld for about a year over petty issues such as TDS (tax deducted at source) mismatch of Re. 1.

The high court order that came last week was following the telecom firm filing two separate petitions seeking expeditious release of two refund amounts pertaining to assessment year 2014-15. While an assessment order of November 29, 2018 gave rise to refund of Rs. 149.98 crore, by another assessment order of February 25, 2019 yet another amount of Rs. 224.28 crore, deducted by the company’s payers towards excess TDS was ordered to be refunded.

The company complained to the high court that neither of these amounts were released by the income tax department.