21 July 2024
If you have received a demand notice for AY 2008-09 related to TDS mismatch for a salary employee, and it is still outstanding, here are the steps you can take:
1. **Verify the Demand Notice:** Review the demand notice carefully to understand the details of the discrepancy. Ensure that the demand pertains to TDS related to salary income for the assessment year 2008-09.
2. **Check Form 26AS:** Log in to your income tax e-filing account and verify Form 26AS. Form 26AS reflects the tax credit available against your PAN, including details of TDS deducted and deposited by your employer.
3. **Compare TDS Details:** Compare the TDS details shown in Form 26AS with the TDS certificates (Form 16/16A) issued by your employer for AY 2008-09. Ensure that the TDS amounts claimed match the amounts deposited by your employer.
4. **Respond to the Notice:** If you find any discrepancies or if the demand notice is incorrect: - Gather all supporting documents, such as Form 16/16A, salary slips, and bank statements showing TDS credit. - Prepare a response addressing the discrepancies and provide supporting evidence. - Submit a response to the income tax department explaining the correct TDS details and requesting rectification of the demand.
5. **Rectification Request:** File an online rectification request under Section 154 of the Income Tax Act, 1961. You can do this through your income tax e-filing account: - Log in to your account. - Navigate to 'My Account' → 'Rectification Request'. - Select 'Taxpayer is correcting data for tax credit mismatch only'. - Fill out the rectification form providing correct TDS details and upload supporting documents. - Submit the request electronically.
6. **Follow-up:** After submitting the rectification request, regularly check the status of your request through your e-filing account. The income tax department may take some time to process your request.
7. **Payment of Demand (if applicable):** If the demand is valid and you need to make payment: - Ensure you have the necessary funds to pay the demand. - Use the designated challan to make the payment through authorized banks or online channels. - Keep proof of payment (challan receipt) for future reference.
8. **Consult a Tax Professional:** If you are unsure about how to proceed or if the demand is substantial, consider consulting a tax professional or chartered accountant who can assist you in preparing a response and navigating the rectification process.
It's crucial to address the demand notice promptly to avoid any penalties or further complications. Ensure all communications with the income tax department are clear and supported by appropriate documentation.
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