RESPONSE TO 143(1) A


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A client has received tax demand notices for AY 2013-14 and 2014-15 but has a TDS refund for AY 2019-20. The question is whether this refund can be used to offset the outstanding tax demand. While automatic adjustment is mentioned, it's advised to formally respond to the demand notice by agreeing or disagreeing. Filing the AY 2019-20 return late may incur a Section 234F penalty, and the refund might not be sufficient for automatic adjustment.

28 February 2020  One of My Clients Received Tax Demand Notice under 143(1)A. for A.Y : 2013-14 = Rs..17090 and A.Y : 2014-15 = Rs.82480.

But he has a Refundable TDS of Rs. 72310. in the A.Y of 2019-20. Can he Adjust the Tax Demand against the Current TDS?. If yes How can I file this Return.Please Guide Me.

28 February 2020 File ITR claiming refund demand outstanding will be adjusted automatically.

28 February 2020 Thank You for your valuable reply sir

29 February 2020 But general process should be pay demand if you agree else submit disagree response.. There will be 10000/- late fee u/s 234F to file AY-2019-20 if you have not filed ITR yet. So the refund is not sufficient for automatic adjustment.. But the right way for demand is - you must file agree or disagree response.. Automatic adjustment is a red mark for your profile since you have not paid tax ,they adjusted.. It's a kind of violation too..

26 May 2020 You can file the ITR return directly on https://www.incometaxindiaefiling.gov.in/ for F.Y. 2019-20 or you may use other sites like https://myitreturn.com/ which are much user friendly.


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