Bank reported TDS in next FY How to rectify?

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This query is : Resolved

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A user is seeking advice on how to rectify an incorrect TDS deduction by their bank, reported in the subsequent financial year. The bank has added the TDS entry with a later booking date but an earlier transaction date. The user needs to know whether to rectify the previous year's ITR or claim the credit in the current year's ITR, especially when 26AS shows a mismatch and online correction options are limited. The recommended solution involves filing a rectification under section 154 or submitting a corrected ITR offline with the accurate TDS entry.

Chetan

Chetan (Querist)
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24 July 2023 SBI incorrectly deducted TDS of ~70K as per 194N in FY20-21, after lot of followups and multiple positive/negative entries in 26AS they finally added it in FY22-23 with data of booking of Nov '22 but transaction date is still Jan '21 What's the proper way to get refund for the same?

Should rectify ITR of FY20-21 or I can claim it in this FY's ITR? If I check 'Tax Credit Mismatch' of AY 21-22 It says "Tax Credit Claimed is Fully Matched with Tax Credit available in 26AS".

How to proceed with rectification?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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25 July 2023 Check the credit is available in FY 22-23.
If it's available claim it in this year.

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Chetan

Chetan (Querist)
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25 July 2023 FY22-23's 26AS doesn't contain it and is not auto-populated in ITR.
The entry is present in FY20-21's 26AS with booking date of Nov'22 and transaction date of Jan'21

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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26 July 2023 File rectification under section 154 under tax credit mismatch for AY21-22.

Chetan

Chetan (Querist)
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26 July 2023 Third option "Tax Credit Mismatch Correction" is not allowing to add new entry only allows to edit existing entries for ITR

Should I choose the option "Return Data Correction (Offline)" and upload new XML with extra TDS entry?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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26 July 2023 Yes, choose and upload corrected ITR.

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