TDS Mismatch and Online Rectification Request

How to know if there is a demand for TDS mismatch?

The Intimations under section 143(1) gives two column computations, one for details as per Income Tax Return filed and the second one being what has been processed by CPC. The difference arising between TDS of ITR filed and as computed by CPC is the reason for demand.

Reasons for mismatches between TDS statement and Form 26AS

There are various occasions where the TDS information in the TDS statement and consequently in Form 16 or 16A may differ from what is available in Form 26AS.  Most common reasons for such mismatch (es) are listed below:

  • Unmatched TDS i.e., the difference in amount Claimed under TAN of the buyer in form 26AS and amount available in E-Filing
  • Failure of the deductor to deposit TDS on time
  • Incorrect amount entered in the TDS return
  • The deductor’s PAN/TAN wrongly entered
  • Mistake in the chosen Assessment year
  • Omissions in the TDS return.
  • Mismatch in the TDS quoted and the actual TDS deducted
  • Failure of the deductor to deposit TDS on time
  • Incorrect PAN quoted in the TDS return

Rectifying mismatches

  1. More often than not, such mismatches can be attributed to wrong information provided in the TDS return. So, please approach your employer/deductor to file a revised TDS return after making the necessary corrections.
  2. The Income Tax department allows the assessee to mention the reason for mismatch in the online portal in answer to a Notice sent by the department.

For Example: Demand due to TDS mismatch, but status of booking in Form 26AS is *F and the TDS amount claimed is same as the amount claimed in ITR, how to rectify it?

If there is TDS mismatch as per Intimation u/s 143(1), but the TDS amount claimed in ITR is equal to the amount appearing in Form 26A with status of booking as ‘F’, then we can file Rectification u/s 154. 

* ‘F’ Final – This is the status you’d hope to see against all your TDS/TCS details. In case of non-government deductors, payment details of TDS / TCS deposited in bank by deductors have matched with the payment details mentioned in the TDS / TCS statement filed by the deductors. In case of government deductors, details of TDS/ TCS booked in Government account have been verified with payment details submitted by Pay & Accounts Officer (PAO).

How to file rectification u/s 154 online for the above mention case?

1.Login to your Income Tax e-filing Account.  

2.Go to ‘e-File’. In the drop-down select ‘Rectification’

3.Select the ‘Order/Intimation to be rectified’ as Income tax’ and ‘Assessment Year’ for which rectification is to be filed

4.Select the ‘Rectification Request Type’ based on the reason for filing rectification.

Here is what you need to do after selecting the reason –

  1. ‘Tax credit mismatch correction only’ − on selecting this option, three check boxes, TCS, TDS, IT, are displayed. You may select the check-box for which data needs to be corrected. You can add a maximum of 10 entries for each of the selections. No upload of an Income Tax Return is required.
  2. ‘Return data correctional xml’ – The taxpayer is correcting data for rectification. Several reasons are displayed. You can select a maximum of 4 reasons.
  3. ‘Only Reprocess the return’ − on selecting this option, the ITR will be re-processed. No upload of an Income Tax Return is required.
  4. ‘Additional information for 234C’ – Nature of income/gain should be provided quarterly basis.

5.Select Option C i.e., only re-process the return, which is the most apt reason as the status of booking of TDS is ‘F’ and also the amount claimed is correct.  

6.Select Submit button

7.On successful submission, a Transaction ID is generated

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