Even if the credit for TDS as claimed in the return matches with the balance as appearing in the Form 26AS, Assessing Officer may still raise a demand for payment of differential amount due to TDS mismatch. The reason for such differences could be as under:
- (1) TAN of deductor was wrongly mentioned
- (2) Name of deductor was not spelt correctly
- (3) Tax deducted by one deductor wrongly included in the amount of tax deducted by another deductor
In case of such TDS mismatch, an assessee can file a rectification request.
Steps to file the rectification request:
- (a) Login to your account in https://incometaxindiaefiling.gov.in
- (b) Go to My Account > Rectification request
- (c) You need the following to fill in the required details:
- (i) PAN
- (ii) Assessment Year
- (iii) Latest Communication Reference Number (it starts with CPC/Assessment Year/)
- (iv) Latest CPC Order date
- (d) Click on Validate to go to next step
- (e) On the next screen, choose 'Taxpayer is correcting data for Tax Credit Mismatch Only' from the drop-down box of 'Rectification Request Type'
- (f) Check from the following relevant boxes for which taxpayer is seeking rectification:
- (i) TDS on salary details
- (ii) TDS on other than salary details
- (g) Fill in all the relevant details including details of tax deducted and reported in the return of income filed earlier
- (h) Click on the button of 'Submit' to submit the rectification request.
The TDS mismatch may also be due to error in TDS return filed by deductor. In such a situation, you should intimate the deductor about such error and require him to rectify the TDS return.
In a press note no. 402/92/2006 dated April 17, 2014 CBDT had noted that many taxpayers commit mistakes while furnishing details of tax credit in the return of income. Such mistakes include:
- (a) Invalid/incorrect TAN of deductor;
- (b) Furnishing same TAN for more than one deductor;
- (c) Filing information in wrong TDS Schedules in the Return Form;
- (d) Furnishing wrong challan particulars in respect of Advance tax, Self-assessment tax etc.
Consequently, the tax credit could not be allowed to the taxpayers while processing returns despite the tax credit being available in 26AS statement. The CBDT, therefore, directs the taxpayers to verify if the demand raised on them is due to tax credit mismatch on account of such incorrect particulars and submit rectification requests with correct particulars of TDS/tax claims for correction of these demands. The rectification requests have to be submitted to the jurisdictional Assessing Officer in case the return was processed by such officer, or the taxpayer is informed by CPC, Bangalore that such rectification is to be carried out by Jurisdictional Assessing Officer. In all other cases of processing by CPC, Bangalore, an online rectification request can be made (as defined above).
You may also read "How to file rectification request on receipt of Demand Notice."
CA Amresh Vashisht