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Income tax return (ITR) filing: What to do in case of TDS mismatch

Income tax return (ITR) filing: What to do in case of TDS mismatch

Income tax return (ITR) filing: What to do in case of TDS mismatch
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By Anshul  Jul 22, 2022 8:43 PM IST (Published)

Income tax return (ITR) filing: Taxpayers now have only 10 days to file ITR for the financial year 2021-22 or assessment year 2022-23 without any penalty. Fill your TAN and other details carefully to avoid TDS glitches.

Tax deducted at source (TDS) plays an important role in income tax return (ITR) filing. There are chances that the credit for TDS as claimed in ITR may match with the balance appearing in Form 26AS, but the assessing officer still raises a demand for payment of the differential amount of TDS.

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Likely reasons for TDS mismatch?


The Central Board of Direct Taxes (CBDT) has highlighted certain mistakes which can lead to such a situation. They are as follows:

1. Entry of invalid/incorrect TAN of deductor.

2. Furnishing the same TAN for more than one deductor.

3. Filing information in wrong TDS schedules in the return form.

4. Furnishing wrong challan particulars in respect of advance tax, self-assessment tax, etc.

5. Tax deducted by one deductor wrongly being included in the amount of tax deducted by another deductor.

Due to any one of the above factors, the tax credit can be disallowed to the taxpayers while processing returns despite it being available in the Form 26AS statement.

What should taxpayers do?

Answering this, Naveen Wadhwa, Deputy General Manager (DGM), Taxmann said, "In case of TDS mismatch, taxpayers can verify if the demand raised 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 if such an officer processed the return or the taxpayer is informed by Central Processing Centre (CPC), Bengaluru, that such rectification is to be carried out by jurisdictional assessing officer. In all other cases of processing by CPC, Bengaluru, an online rectification request can be made," Wadhwa added.

Here are the steps to submit a rectification request

Step 1: Log in to the e-filing portal.

Step 2: Click on Services > Rectification

Step 3: On the next page, click 'New Request'

Step 4: Select the Assessment Year from the drop-down. Click Continue. Step

Step 5: On the next screen, select the option of ‘Tax Credit Mismatch Correction’ from the following types of income tax rectification requests:

(a) Reprocess the return.

(b) Tax credit mismatch correction.

(c) Additional information for 234C interest.

(d) Status Correction.

(e) Exemption section correction.

(f) Return data correction (Offline).

(g) Return data correction (Online).

Step 6: The schedules under this request type are auto-populated based on the records available in the corresponding processed return. For editing or deleting a schedule, select the schedule, then click ‘Edit’ or ‘Delete.’

Step 7: Enter the correct details in the relevant schedules and click ‘Continue’ to submit the request. On submission, the verification page will open.

Where TDS mismatch is due to an error in the TDS return filed by the deductor, taxpayers should approach the deductor to rectify the TDS return.

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