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TDS late credit

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Raj Ina

21 Points Posted on 20 November 2023

Hi,

We have filed ITR for FY 2022-23 in the month of September 23 and got the refund in the month of November 23. The TDS payment from one of the clients was pending and we pushed them to make the payment in the month of August 23. After getting the assurance from the client that they will be depositing the TDS, we went ahead for filing the returns in September 23.

The problem is that we got incorrect refund since the TDS credited from the same client wasn't reflecting in the 26AS until we received the refund. We again pushed the client to check on this and from the very next day we got form 16A from the same client and TDS amount is now reflecting in the form 26AS.

Now how to get this amount as this is supposed to be a refund? What is the time span required for the process?

Thanks in advance,

Replies (2)

Quick Summary

This discussion addresses a common issue where TDS credit appears in Form 26AS only after the Income Tax Return (ITR) has been processed and a refund issued. The user filed their ITR assuming TDS payments were made, but a client's delayed TDS deposit meant the credit wasn't reflected. The advice provided is to file a rectification under Section 154 of the Income Tax Act to claim the additional TDS credit and secure the correct refund. This process is typically allowed within four years from the end of the financial year in which the initial intimation was sent.

Gokul Sharma

jamshedpur

3378 Points Posted on 21 November 2023

File TDS credit mismatch....

Gokul sharma
gtaxsolutionsjsr @ gmail.com

Aashok Kumar Sharma

Finance/Compliance Consultant

75659 Points Posted on 08 November 2026

TDS credited after processing:
• If the deductor filed or corrected TDS returns late, and the TDS now appears in 26AS after your ITR was processed (with the refund), file rectification under Sec 154 (Tax credit mismatch correction) to claim the additional TDS. The CPC will issue the additional refund.
• Rectification is allowed within 4 years from the end of the FY in which the intimation was passed.