TDS Mismatch and Online Rectification Request

Excel for
Chartered Accountants

One of the advantages of Centralised processing Centre (CPC) is fast processing and refunds cheques coming directly at the door steps of the assessees. However the processing works fine so long as there is no mismatch in the amount of Tax Deducted at Source (TDS) claimed in the Income Tax Return and TDS details asper online Form 26AS. If there happens to be a mismatch between the two, CPC Bangalore is processing Income Tax Returns by giving credits only for TDS as per online form 26AS and raising income tax intimations under section 143(1) with unmatched TDS as payable by the assessee. The intimations in these cases are considered as notice of demand under section 156 of the Income Tax Act,1961. If not taken care of these intimations can even be followed by penalty Notices under section 221.

How to know if there is a demand for TDSmismatch ?

The Intimations under section 143(1) gives tow column computation, one for details as per Income Tax Return filed and the second one being what has been processed by CPC.

The serial no.49 of the intimation gives the amount of TDS, Note down if there is any difference between the amount of TDS as claimed and as processed. As you can see in the following figure, there is a difference of Rs. 1500/- between the two amounts.

Also, at serialno 59 of the intimation there shall be some tax payable.

Tax payable could be a little higher than TDS difference for the reason that due to non credit of full TDS, there might be some interest added to tax amount. As you can see in the following figure, the tax payable is Rs. 1850/- due to total interest liability of Rs. 350/-

Precautions before filing Online rectification request under section 154

After you have figured out that there is a mismatch in TDS in the intimation received, you should within 30 days file an online rectification request. Before you file that, see if there is any TDS credit not appearing in form 26AS, if so, followit up with the deductor to file or rectify its TDS returns if required.

Step-wise procedure to file online rectification request ....... Continue reading >>>