Intimation u/s 245

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C R Chowdhury (Querist)
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17 May 2014 I filed for manual returns for A.Y. 2009-10 and now I am retired. I had an outstanding tax demand of Rs. 48,450/- generated for A.Y. 2009-10 which I saw in July 2013, although I paid all the taxes in that year. Form 26AS for A.Y. 2009-10 showed no TDS. I wrote an application to my jurisdictional A.O. on July-2013 to nullify the outstanding tax demand and I enclosed form-16. Form-16 for A.Y. 2009-10 had eleven entries amounting to Rs. 37,947/-. I guess that additional amont of Rs. 10,503/- is interest due on Rs. 37,947/-. After the A.O. received the application, he queried my then employer asking him for the TDS certificate and copy of the tax challans for nullification of the outstanding tax demand. Meanwhile, I also asked my employer to correct the entries of my TDS for A.Y. 2009-10. Now when I checked the Form 26A.S for A.Y. 2009-10, I can see three out of eleven entries amounting to Rs. 25,447/- present in form 26A.S. My employer also informed me that he has sent the TDS certificate and challan copies to the A.O. After all of this, the outstanding tax demand was not nullified and I got an intimation u/s 245 from Income Tax Office which has adjusted refunds of Rs. 8,023/- for A.Y. 2013-14 against the outstanding tax demand of A.Y. 2009-10. I have 15 days to contact my A.O., else this adjustment will be treated as final. I wrote another application to the A.O. and when I called him today asking about action he has taken, he tells me that because of elections, the internet is blocked and there is nothing he can do before the end of month. He also told me that since all the entries of Form 26AS for A.Y. 2009-10 are not matching, he can not do anything. What should I do in such a case? I contacted CPC helpline and they say that only A.O. has to be approached in such a case.

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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17 May 2014 its very understandable detailed query.

its conclusion is for A.Y. 2009-10 tax demand raise due to tds amount not reflected in form 26AS.after your approach to A.O and employer. A.o has demanded for tds certificate & challans and employer has to file or revise tds return. afterthan again received intimation/notice u/s 245.

now main things is to do is,

ask your employer to do file tds return with right and proper data.its highly recommended.if you don't do that problem will be same. so when your form 26as shown same as tds deducted and shown in form 16 then you have to contact A.O for the intimation u/s 245.

there is no problem about adjustment if your 26AS shown proper amount. you have to contact A.O. not to adjust your refund against demand. if they convince they will not adjust your refund or if they do you will have to ask for refund for the A.Y.2009-10 which is adjusted in A.Y. 2013-14 against refund.

in both way adjusted or refundable amount will be in your pocket.

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C R Chowdhury

C R Chowdhury (Querist)
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18 May 2014 Thanks Murtaza, for the reply.
As I pointed out in my query, the employer has filed revised TDS return and Rs. 25,447/- out of Rs. 37,947/- do appear on the form 26AS for A.Y. 2009-10.
Should the A.O. not adjust Rs. 25,447/- + Interest against the outstanding tax demand?

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Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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19 May 2014 employer has to file revised return again with full amount correction of Rs. 37947/- after than you have to contact your a.o. with written letter not to set off or adjust my previous demand with current refund claim and ask them to do assessment again for the A.Y. 2009-2010 (Tax Payable Rs. 37947/- and TDS Deducted Rs. 37947/- after revised tds return).