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Demand payable is more than zero

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Ashish

31 Points Posted on 15 January 2020

There was a short deduction of TDS at the time of deduction from Salary. However employee has filed the ITR along with all Tax Due. The Short deduction is showing as demand in TDS CPC of Employer. We applied for Form 26A & appointed a CA for filing annexure A. After uploading of annexure A by CA, the form is being rejected, rejection reason being "Demand Payable is more than Zero.." Please Help.

Replies (3)

Quick Summary

An employer is experiencing Form 26A rejections for TDS short deductions, with the Income Tax department citing 'Demand Payable is more than Zero'. This occurs when the deductee (employee) has outstanding tax demands on their Income Tax Return (ITR), even if they've filed it. The system validates if the employee has declared the income and paid all taxes. If there's a pending demand, Form 26A may be rejected. The discussion seeks solutions for this specific rejection reason.

CA Arun Tiwari

Partner

6665 Points Posted on 16 January 2020

when you are filing 26A then Deductor needs to provide the PAN of the deductee against which he has made short or no deduction and after that PAN has been validated by the Income Tax department that whether such income has been declared by the deductee in his ITR and all Tax dues has been paid by him. after assessment there may be the demand pending in ITR of deductee and that could be the reason for rejection of your request of form 26A.