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RECTIFICATION U/S 154

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Kamal Verma

Financial advisor

422 Points Posted on 21 February 2020

Dear Experts,

Intimation u/s 143 (1) shows a demand of Rs. 1.25 Lacs (not considering TDS of Rs. 1.25 Lacs), assessee has filed request for correction u/s 154 online. However I. Tax deptt freeze the bank account and deposits of assessee amount in Crores, What should assessee do??

Replies (4)

Quick Summary

An assessee has had their bank account frozen by the Income Tax department, despite having filed a rectification request under Section 154 regarding an intimation under Section 143(1). The department has frozen assets worth crores, not accounting for TDS. It is advised to meet the Assessing Officer (AO) directly to explain the situation and ensure the TDS credit is applied. If the AO is unresponsive, escalating the issue to the jurisdictional Pr. CIT and JCIT, with a copy to the FinMin, may be necessary.

Kapadia Pravin

10683 Points Posted on 21 February 2020

Meet the AO and explain the facts. I am sure they will immediately refreeze the bank account and also give credit for TDS amount if it tallies with 26AS

Raghav Jhunjhunwala

46 Points Posted on 21 February 2020

No A.O. in his right mind directly freeze your bank accounts. He must have served you with a notice for collection of tax arrears and also a notice for show cause for not to initiate recovery proceedings. Please file proper replies with the authority to correct the situation.

Kamal Verma

Financial advisor

422 Points Posted on 22 February 2020

Assessee had already filed application u/s 154 before 10 days but account is still freeze. How much time taken by authority to rectify the correction.