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Notice U/s 154

Deepak (Financial Analyst ) (27 Points)

15 December 2020

My clients getting same Notice again & again. I have rectified and given response so many times. Tds is deducted by employer and is not considered in notice and demanding to pay the tax.
What is the solution?

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4 Replies

Karun Menon (602 Points)
Replied 15 December 2020

Check if the amount is shown in Form 26AS.

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queryinsta054@gmail.com (234 Points)
Replied 16 December 2020

The amounts shown in Form 26AS are considered while processing returns.Hence, if the TDS deducted and paid by the client's employer is not reflecting in your client's Form 26AS, then the same will not be calculated and the notice u/s. 154 will be issued repeatedly. Better check the Form 26AS of your client.If the said TDS is not reflecting therein, the client's employer should be asked to rectify his TDS statement. You may advise your client to keep Form 16 issued by the employer handy since it is a proof of TDS being paid.

Deepak (Financial Analyst ) (27 Points)
Replied 16 December 2020

Tds is reflecting in form 26AS. They have not considered while processing IT Return.

queryinsta054@gmail.com (234 Points)
Replied 17 December 2020

In such a case, a request to reprocess the return can be made on the income tax site.Hopefully the second time around, the TDS would be considered and the demand would be nullified.

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