Answer

1. F

   Facts

   CPC gives TDS credit only as it appears in Form 26AS. If your employer or bank short-reported or wrongly reported your TDS, the intimation shows a demand even though tax was actually deducted.

2. P

   Provisions and law

   • Sec 143(1), Income-tax Act 1961 (now Sec 270(1))After processing your return, CPC sends an intimation showing tax payable or refund due, after only limited adjustments.
   • Sec 199, Income-tax Act 1961Credit for tax deducted is given to the person whose PAN the deductor reported, in the year the income is assessable (2025 Act number to be confirmed).
   • Sec 154, Income-tax Act 1961 (now Sec 287)A mistake apparent from the record can be rectified on request, within four years from the end of the financial year in which the order was passed.
3. A

   Analysis

   Suppose Form 16 shows TDS of ₹60,000 but Form 26AS shows ₹45,000, and the intimation raises a demand of ₹15,000 plus interest. The fix is at the deductor's end: it must file a correction statement so 26AS updates. Once 26AS shows ₹60,000, file a rectification on the portal so CPC reprocesses with the correct credit. Meanwhile, respond to the demand as 'disagree' with the reason that TDS is not reflected.

4. C

   Conclusion

   1. 1Download Form 26AS and compare it with Form 16 Part A.
   2. 2Write to the employer or bank with the gap and ask for a TDS correction statement.
   3. 3Respond to the outstanding demand as disagree, giving the TDS reason.
   4. 4Once 26AS is updated, file a rectification choosing tax credit mismatch correction.
   5. 5Track the new intimation after rectification.

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