Tds claim made out of mistake

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mukesh kumar singh (Querist)
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16 July 2012 i have a client whose return for AY:2011-2012 has been filed, somehow his 26AS was not checked,after checking the same, it was found that there was an income of 1,12,500 on which TDS of Rs13700 approx was deducted.
So a revised return claiming the same was filed on the same day.
Now it is found that the said income was credited into my client account out of mistake as the name of both the assesee is same.
Now what should be done as i have enhanced my assessees income as there was TDS deducted.

Amol S Joglekar

Amol S Joglekar (Expert)
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16 July 2012 Re revise the ITR. i.e. revise the revised return.

mukesh kumar singh

mukesh kumar singh (Querist)
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20 July 2012 the revised return can't be revised again as because the due date of revising the return for the AY 2011-12 has been passed. i.e 31st of march.And the same has come to the knowledge of assessing officer also.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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27 July 2025 You're right — this is a tricky situation, and here's a structured way to address it:

🔍 The Situation Recap:
For AY 2011–12, your client mistakenly included income of ₹1,12,500 and claimed TDS of ₹13,700.
This income was credited by mistake — not your client’s actual income.
You revised the return before discovering the error.
Now the revision deadline (31 Mar 2013 for AY 2011–12) has passed.
The Assessing Officer (AO) is also aware.
✅ What Can Be Done Now:
Since a second revision is not allowed after the due date (as per Section 139(5) of the Income Tax Act), you're in a scrutiny/rectification situation. Here are your options:

🛠️ Option 1: Rectification under Section 154
File a Rectification Request (u/s 154) on the Income Tax e-Filing Portal explaining:
The TDS credit was taken by mistake due to a name mismatch.
The corresponding income does not belong to your client.
Attach evidence (bank statement, communication with deductor, etc.).
This is allowed for mistake apparent from the record.
👉 Note: The rectification window is 4 years from the end of the financial year in which the order was passed. For AY 2011–12, if the assessment was completed in FY 2013–14, rectification can be filed up to 31 Mar 2018 — this window is now closed, unless assessment was delayed.

🛠️ Option 2: File a Letter with the Jurisdictional AO
Since the rectification time limit is possibly over, and if the return is under scrutiny:

Write a detailed letter to the AO, admitting the mistake of claiming incorrect income and TDS.
Request the AO to exclude that income and reverse the TDS credit.
Attach:
Original revised ITR
Copy of Form 26AS
Bank evidence showing the deposit doesn’t relate to your client
Optional: letter from actual recipient if available
This voluntary disclosure helps in establishing good faith and avoids penalty under Section 270A for misreporting.

⚖️ What If AO Does Nothing?
If you’ve claimed income not belonging to the assessee and taken TDS credit, and now it’s not revised or rectified:

The return stands as filed.
Your client may receive refund if excess tax was paid.
But later, the real recipient may face issues (e.g., mismatch in TDS and income).
If refund is issued and later identified as wrong, the department may recover it with interest and penalty.
🚨 Recommendation:
Immediately file a written submission to the AO.
Keep a recorded communication trail to demonstrate your client acted transparently once the error was identified.
Going forward, always reconcile Form 26AS before filing.

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