Income tax demand adjustment

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This query is : Resolved

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A client's income tax return for AY 2018-19 showed a demand due to incorrect TDS credit. This demand was used to adjust a refund due for AY 2021-22. The employer has since corrected the TDS for AY 2018-19. The query seeks advice on how the assessee can now claim the refund for AY 2021-22, which was wrongly adjusted.

DIVYESH JAIN

DIVYESH JAIN (Querist)

15 November 2021 Dear Sir,

One of my client has filed his income tax return for AY 2018-19 which gave him Income tax demand due to wrong TDS credit given by his employer.

In AY 2021-22 there was a refund in his income tax return and the demand for AY 2018-19 got adjusted while issuing refund by Income tax.

The employer has now corrected the TDS credit for AY 2018-19.

What should be done by the assessee to get the refund which was due for AY 2021-22 but was wrongly adjusted due to demand in previous years.

Please help me in this matter.

Regards,
Divyesh Jain

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

15 November 2021 File rectification request for AY 2018-19, to rectify the TDS miscalculation.

DIVYESH JAIN

DIVYESH JAIN (Querist)

15 November 2021 But how will the assessee get the refund for AY 2021-22. Will he get the refund automatically or does he have to apply for Intimation U/s. 143(1) for both the years?

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

15 November 2021 Once the rectification is accepted, he will get back the demand amount raised in AY. 2018-19.

DIVYESH JAIN

DIVYESH JAIN (Querist)

15 November 2021 Ok Sir.. Thanks for the reply

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

15 November 2021 Most Welcome

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