deductor noted section 194J in 26AS instead of 194IB
22 May 2020
CPC sent intimation 143 (1)(a)(iv) showing variance on the declared amount on Schedule OS. after noticing the issue, the deductor revise the 26AS. Demand was raises base in 194J
from the rent, and added to the declared OS income shown in 26AS. The entire rent was declared correctly.
In short it amounted to being tax twice. Have requested to reprocess the return base on the revise 26AS by the deductor. This is for AY 2017. Now I receive 245 notice of demand to be deducted from my ITR 2019. No professional fee income is derived by the assessee. Mainly rental income & F.D. interest inc. only. How to end this matter.
23 May 2020
Two of my clients were also having same sort of problems. In their cases they had contract income but deductor deducted TDS @ 10% u/s 194J and later the TDS return of the deductor was corrected showing deduciton u/s 194C. Form 26AS is now showing deuciton u/s 194C and also u/s 194J as old entry and then one correction entry resulting in Zero deductio u/s 194J. We filed rectification u/s 154 but the same way the CPC continued to take 50% of receipts u/s 44ADA in addition to the income returned. Revised returns were filed and one case was correctly processed while other was processed again taking professional income. Application u/s 154 was filed but they did not entertain it and reprocessed in the same way. Your case is also like that of mine. Only recourse available is not to file an appeal before CIT(A). So please file an appeal before CIT(A) in Form 35 online or you may go for a revision u/s 264 before CIT.
23 May 2020
Sir, in your case to remove the wrong entry 10% deducted 194J The deductor should indicate in 26AS under remark 'B' with minus sign, the exact amount shown in 194J. By placing zero, the first entry really was not removed. Have the deductor do the above . Now whether rectification 154 or revise of ITR has to be done this is my dilemma.
In my case the deductor revise the 26AS correctly. CPC was requested to reprocess again the ITR. upon reprocessing the ITR every entry as declared will match. What and how to go about 154 reply and what xml file to attach is my issue.