ITR
Demand raised because TDS credit was not given
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Facts
CPC allows TDS credit only as shown in Form 26AS when it processes your return. If credit was missing then, a demand arises. You can dispute the demand online and seek rectification once the credit appears.
Provisions and law
- Sec 143(1) (now Sec 270(1))The return is processed and an intimation shows the tax, interest, refund or demand worked out
- Sec 156 (now Sec 289)A notice of demand is served for any tax, interest or penalty payable
- Sec 154 (now Sec 287)A mistake apparent from the record can be rectified, on your request or on the officer's own
Analysis
Under Sec 143(1) (now Sec 270(1)) the intimation uses credits available at processing. Go to Pending Actions, Response to Outstanding Demand, and choose that you disagree, giving the reason 'TDS deducted, credit not reflected, deductor asked to correct'. Once the deductor's correction shows in Form 26AS, file a rectification request under Sec 154 (now Sec 287) for tax credit mismatch. The demand should then be reduced or cancelled.
Conclusion
- Open Response to Outstanding Demand and mark it disputed with reasons.
- Get the deductor to fix the statement.
- When credit appears, file rectification for tax credit mismatch.
- Check the revised intimation.
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TDS deducted but not credited: claim and grievance
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