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

DIVYESH JAIN

DIVYESH JAIN (Querist)
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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)
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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)
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15 November 2021 Ok Sir.. Thanks for the reply

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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15 November 2021 Most Welcome

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