How to reply to Outstanding Demand

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Kalpesh (Querist)
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07 June 2026 I had filed my ITR on 13-9-25. One of my deductors had deducted Tds of 55000, but not paid to the Government. I had deducted this Tds amount from the tax liability amount in my return and the final amount was 29000 Tax Refund.
On 10-1-26, I received a Demand Order for the difference amount alongwith interest.
Afterwards my deductor paid the Tds amount with interest and filed the Tds return on 5-3-26.
This is reflecting in 26 AS, but in my IT portal, the Demand is still showing under Pending Actions.
Please guide me as I have to avail the Refund of 29,000.

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
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07 June 2026 Check that the ₹55,000 TDS credit is actively showing as matched in the current Form 26AS.

Go to Pending Actions > Response to Outstanding Demand, choose Disagree with Demand, select TDS credit mismatch, and upload Form 26AS as proof.

File an online Rectification Request u/s 154 choosing "Reprocess the Return/Tax Credit Mismatch" so the automated system updates its records against the revised 26AS data to nullify the demand and release the refund.

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