Incorrect ITR processed- 143(1) incorrectly shows huge TDS mismatch and hence demand - Please help!

Notification 2268 views 29 replies

sk_1122

159 Points Joined January 2011

Dear CAs and Tax Experts

Kindly help and suggest corrective action for the incorrect ITR processing and intimation under section 143(1) I received for AY24-25. Here are the details:

I filed my ITR on 29th July 2024. All TDS and advance taxes claimed in ITR were matched with 26AS and AIS. My employer (One of India's largest and reputed employers) has deducted TDS of INR 500000 and same has been filed in 26AS by them on 23-Apr-2024 and hence the data was updated well in time when I filed the return. I validated the same again today (10th Sep 2024) and it is still same in 26AS.

Today (10th Sep 2024) I received ITR processing notification where the intimation shows the TDS considered / allowed to be INR 340000 for the same employer missing exactly the Q4 TDS amount. Also, section 234 interest etc. is added due to it, resulting in approx 170000 demand while I was expecting some refund. All other details are matching in the intimation. This is definitely a system / processing error by CPC. I wonder why!

what rectification or correction I need to do and what process to follow exactly? My basic internet search suggests just a 'Reprocess the return' would do but I am worried what if the same error of CPC / processing repeats?

Also, anyway I can claim my minor missed TDS credit of Bandhan bank while doing this correction? If not, can this differential amount be claimed in next year's ITR? Please elaborate a bit.

Also, after rectification will I need to repond to the demand or it will automatically nullify?

Edit: Rectification/ Reprocess also not allowed to be raised due to error:

Something seems to have gone wrong while processing your request. Please try again. If error persists quote error number ITD-EXEC2002 when you contact cust omer care for quick resolution.

Regards

Replies (29)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

197438 Points Joined July 2016

First question arises is why TDS u/s. sec 192 for Q4 was missed? Is it tagged as F? or is still under finallization stage?

As such it would be better to file revised return u/s. 139(5) IT act; so the missing TDS can also be claimed.

sk_1122

159 Points Joined January 2011

Originally posted by : Dhirajlal Rambhia
	First question arises is why TDS u/s. sec 192 for Q4 was missed? Is it tagged as F? or is still under finallization stage? As such it would be better to file revised return u/s. 139(5) IT act; so the missing TDS can also be claimed.

Sir, it was never missed in terms of filing by employer or claiming the same in ITR by me. Status is F for all 12 months entries. The ITR processing has somehow not added the Q4 numbers in automated processing.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

197438 Points Joined July 2016

File "Reprocess the Return" request, additionally.

Sarakz

4 Points Joined September 2024

I have exact same issue. My ITR got processed and received intimation today. Even in my case, entire Q4 TDS is not considered while processing return.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

197438 Points Joined July 2016

File "Reprocess the Return" request, along with grievance along with the intimation copy.

Pavan kumar Yellapu

7 Points Joined September 2024

For me also TDS is showing 2k instead of 45k. And I got 2k refund instead of 45k

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

197438 Points Joined July 2016

It seems to be glitch in the system; file grievance for the error, along with 'reprocess the return' request.

sk_1122

159 Points Joined January 2011

Rectification/ Reprocess also not allowed to be raised due to error:

Something seems to have gone wrong while processing your request. Please try again. If error persists quote error number ITD-EXEC2002 when you contact cust omer care for quick resolution.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

197438 Points Joined July 2016

File Grievance with screenshot.

sk_1122

159 Points Joined January 2011

Filed grievance. Usually how long it takes to get an update? Tried calling helpdesk multiple times but noone answered even once.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

197438 Points Joined July 2016

Depends... usually 3 to 6 working days. Many times absurd reasons received, but this time hope 'all is well.'

sk_1122

159 Points Joined January 2011

Unnecessary hassle and harrassment. Even for the purpose of collecting taxes, government failing to put tax money to proper use in keeping basic IT services stable.

sk_1122

159 Points Joined January 2011

Unnecessary hassle and harrassment.

sk_1122

159 Points Joined January 2011

Even if this Rectification error resolves and when I am able to file a reprocess rectification, I think it will fail again. I just tried to proceed with initial steps of filing a fresh or revised return in the portal and it is still automatically detecting that lesser and incorrect TDS amount for my employer in the TDS section of ITR form while 26AS shows the correct and full amount I have originally claimed. Let's see what happens via the grievance I raised.