The tax withheld at source (TDS) plays an important role in the filing of the income tax return (ITR). Chances are that the credit for TDS as claimed in ITR may match the balance shown in the Form 26AS, but the valuation agent still raises a claim for payment of the differential amount of TDS.
Possible reasons for TDS incompatibility?
The Central Board of Direct Taxes (CBDT) has highlighted certain errors that can lead to such a situation. They are the following:
1. Entry of an invalid/incorrect TAN of the deductor.
2. Provide the same TAN for more than one deductor.
3. Submission of information in wrong TDS annexes in the return form.
4. Providing false information regarding withholding tax, self-assessment tax, etc.
5. Tax deducted by one deductor incorrectly included in the amount of tax deducted by another deductor.
Due to any of the above factors, the tax credit may be disallowed to taxpayers when processing returns although it is available in the Form 26AS return.
What should taxpayers do?
In response, Naveen Wadhwa, Deputy Managing Director (DGM), Taxmann said, “In the event of a TDS mismatch, taxpayers can check whether the claim raised is due to a tax credit mismatch due to such incorrect information and submit rectification requests with correct FT/Tax Claims information for rectification of such requests.”
“Requests for rectification should be submitted to the Jurisdictional Assessment Officer if such an officer has processed the return or if the taxpayer is advised by the Central Processing Center (CPC), Bangalore, that such rectification is to be made by the “jurisdictional assessment officer. In all other cases processed by CPC, Bengaluru, an online request for rectification can be made,” Wadhwa added.
Here are the steps to submit a rectification request
Step 1: Log in to the e-filing portal.
2nd step: Click on Services > Rectification
Step 3: On the next page, click on “New request”
Step 4: Select the assessment year from the drop-down menu. Click Continue. Walk
Step 5: On the next screen, select the “Correction of tax credit discrepancy” option from the following types of income tax correction requests:
(a) Restate the statement.
(b) Correction of tax credit mismatch.
(c) Additional Information for Interests 234C.
(e) Correction to exemption section.
(f) Correction of return data (offline).
(g) Correction of return data (online).
Step 6: The annexes under this type of request are filled in automatically according to the records available in the corresponding processed declaration. To edit or remove a program, select the program, then click “Edit” or “Remove”.
Step 7: Enter the correct details in the relevant annexes and click “Continue” to submit the application. Upon submission, the verification page will open.
Where the TDS mismatch is due to an error in the TDS statement filed by the deductor, taxpayers should contact the deductor to rectify the TDS statement.
(Edited by : Shoma Bhattacharjee)