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Rectification of demand return

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Adarsh Babu

49 Points Posted on 18 October 2024

Dear team

one of my client have received a notice regarding like sufficient tax not paid for AY 2023-24

He is filed his return with a refund of 65000 and after filing the return he recieved another tds amount but it's can not claimed in that period so he is filed an updated return by with hike in income and pay tax utilising the excess tds credit for the purposes of loans

Now the demand of 1lakh arrived the sufficient tax not paid for the income in updated return

what's the solution for this ? Can I rectify the return ?

Replies (2)

Quick Summary

A client filed an updated return for AY 2023-24 and subsequently received a demand notice for insufficient tax paid. The issue arose because additional TDS was received after the initial return filing and couldn't be claimed then. The proposed solution involves rectifying the return by filing a revised return within the time limit and paying the demanded tax, plus any applicable interest. If the tax has already been paid, a rectification application can be filed with the Assessing Officer.

Rama chary Rachakonda

Master in Accounts & high court Advocate

9620 Points Posted on 18 October 2024

Solution: 1. Rectify the Return: Yes, you can rectify the return by filing a revised return (u/s 139(5)) within the prescribed time limit (usually 1 year from the end of the relevant AY).

2. Pay Additional Tax: Pay the demanded amount of Rs. 1,00,000, plus interest (if applicable), to avoid further proceedings.

3. Claim Relief: If you've already paid the demanded amount, you can claim relief by filing a rectification application (u/s 154) with the AO (Assessing Officer).

Remember, rectification is allowed only for arithmetic errors, factual errors, or bona fide mistakes. Ensure you have a valid reason for rectification and follow the proper procedures to avoid any adverse consequences.