How to reply to Outstanding Demand

This query is : Resolved

Kalpesh (Querist)
Follow

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

Aashok Kumar Sharma (Expert)
Follow

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.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now