Dear CAs and Tax Experts
Kindly help and suggest corrective action for the incorrect ITR processing and intimation under section 143(1) I received for AY24-25. Here are the details:
I filed my ITR on 30th July 2024. All TDS and advance taxes claimed in ITR were matched with 26AS and AIS. My employer (One of India's largest and reputed employers) has deducted TDS of INR 574455 and same has been filed in 26AS by them on 23-Apr-2024 and hence the data was updated well in time when I filed the return. I validated the same again today (10th Sep 2024) and it is still same in 26AS.
Today (10th Sep 2024) I received ITR processing notification where the intimation shows the TDS considered / allowed to be INR 415733 for the same employer missing exactly the Q4 TDS amount of INR 158,722. Also, section 234 interest etc. is added due to it, resulting in approx 169000 demand while I was expecting Rs 900 refund. All other details are matching in the intimation. This is definitely a system / processing error by CPC. I wonder why!
Couple of minor additions:
- Apart from the major mismatch mentioned above, there is a another minor and again incorrect mismatch reported in the intimation. Yes bank deducted a TDS of 10637, same is shown in 26AS and I claimed the same in ITR but the mismatch report says TDS as per 26AS is 10640
- For Bandhan Bank, there was some late correction done by them after my complain and after I filed the ITR where I claimed the earlier reported TDS of Rs 7106 which was later corrected by the bank to 7801. Biscially I claimed less TDS credit. If this was claimed properly, my expected refund would have been Rs 1600 instead of Rs 900 as in the filed ITR.
Mainly for the major incorrect TDS mismatch reported above, what rectification or correction I need to do and what process to follow exactly? My basic internet search suggests just a 'Reprocess the return' would do but I am worried what if the same error of CPC / processing repeats?
Also, anyway I can claim my minor missed TDS credit of Bandhan bank while doing this correction? If not, can this differential amount be claimed in next year's ITR? Please elaborate a bit.
P.S - I know basics of ITR etc. based on self interest in personal finance etc. and am not from commerce / tax / accounting background
Also, after rectification will I need to repond to the demand or it will automatically nullify?
Regards
sk
CAclubindia
