08 May 2016
Dear Sir, An Assesse had Income Tax Demand for A.Y. 2003-04 for mismatch of TDS deducted from bank's fixed deposit in Form 16A and with IT Deptt. Now in A.Y. 2015-16 he had a refund for a certain sum of money which has been adjusted by the IT Deptt against the outstanding demand for A.Y. 2003-04. The Assesse has approached the ITO of the respective ward because in A.Y. 2003-04 it was a manual filing and the demand raised by the ITO, but the ITO told him that as the Return for A.Y. 2015-16 has been filed electronically so the Assesse has to make rectification online for the demand adjusted. My question to you is how is it possible as their in no mistake in the Return filed for A.Y. 2015-16. Please help me to sort out of the matter. I would be very thankful to you if you suggest me what to do now as TDS deducted for A.Y. 2003-04 was fully reflected in Form 16A given by bank but the IT Deptt says their is a mismatch of TDS in their site.
09 May 2016
First of all contact Local AO and get the assessment order of AY 2003-04. Find out the reason of demand. Clear that. Verify the TDS details and Form 16 /16A. Some time PAN is incorrect in Form 16/16A. No problem or mistake in AY 2015-16 ITR. Refund has adjusted due to earlier mistake / Demand. Clear the earlier mistake / Demand. Once it is cleared file the Rectification for AY 2015-16 online.
Should you need any further information, please do not hesitate to contact us.
Abhishek Ranjan Singh ARS Solutions www.arssolutions.co.in +919022838615
Note : If you find our reply useful. Please Score us by clicking on "THANK USER"
09 May 2016
You need to submit written request to jurisdictional AO, explaining about past demand raised along with 26AS for that period & form 16. AO has the power to quash demand for past year. After quashing, you may file online rectification to get your refund processed and issued. For any further query, you may write us at info@wealth4india.com or call us @ 9266242424. Alternatively may Logon to www.wealth4india.com
09 May 2016
The demand has arisen because of TDS mismatch in form 16A and it not reflecting in 26AS. The problem in this case is that matter pertains to AY 2003-04 and online form 26AS are available only from AY 2008-09 onwards. So you will have o access to form 26AS but you can file a rectification application u/s 154 to the AO along with copies of form 16A and ask him to rectify the said demand by explaining about TDS. You may also quote the judgment of Delhi High Court in the case of Court on its own motion vs UOI wherein it was ruled that the assessee is entitled to tax credit on the basis of TDS certificate even if the TDS is not reflecting in form 26AS. Once he rectifies the demand for AY 2003-04 then only your matter for 2015-16 will be cleared and full refund will be granted to you.
CAclubindia
