ADJUST TDS AGAINST TAX DEMAND

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TAX CONSULTANT
347 Points Posted on 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.

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On 28 February 2020 at 17:28 Report
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Quick Summary
A user is asking if they can offset a client's tax demand from AY 2013-14 and AY 2014-15 against a TDS refund from AY 2019-20. While past practice allowed online adjustment by CPC, it's now case-dependent. The advice is to file the AY 2019-20 return, wait for the refund, and then pay the older demands. Alternatively, if disagreeing with the past demand, a 'disagree' response can be filed. It's clarified that tax paid in one year cannot be adjusted against another year's liability, and attempting to offset may negatively impact the tax profile.

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CFO- at NHTF
58280 Points Posted on 28 February 2020
Yes.In the past few years the CPC used to do the online adjustment for the past demand against latest year tax refund.

But now a days it depends on case to case.

So better file ITR for AY-2019-20 if filed wait for tax refund and pay the demat for 2013-14 AY & 14-15 AY
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On 28 February 2020 at 19:50
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Manger Accounts & Finance
363 Points Posted on 28 February 2020
You can paid the demand and file for refund
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On 28 February 2020 at 20:37
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CFO- at NHTF
58280 Points Posted on 28 February 2020
But if you are not agreed for past demand then you may submit disagree response
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On 28 February 2020 at 21:25
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Profession Business
28246 Points Posted on 29 February 2020
Sec 143 1A arises in the following cases:
a)A communication of proposed adjustment under Sec 143(1) (a) is sent to taxpayers wherein there is a mismatch of the income /deductions/exemptions reported in Income tax return.
you find where there is a mismatch.
there can be no adjustment of tax paid of one year against another year liability.
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On 29 February 2020 at 08:22
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CFO- at NHTF
58280 Points Posted on 29 February 2020
So better to clear off the past demand . Demand setoff makes your profile red due to violation in earlier years
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On 29 February 2020 at 19:21

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