CA Sanat Pyne (F.C.A. & M.COM) (20102 Points)

09 August 2010  


For those who have received demand notice from Income-tax department in connection with Income-tax return for the A.Y. 2009-10 [F.Y. 2008-09].


Applicable to those Assessees who have filed their Income-tax Return Online in Form No. ITR-2.


Known Reason for Demand that have come to our notice are as mentioned below:


·         Reason 1: TDS Mismatch TDS Credit claimed in the Income-tax Return has not been considered by the Income-tax Department. There are various possibilities for this query: Viz. 

1.     You might have quoted wrong PAN number to your employer 

2.     Correct PAN number was given to your employer in the mid of the year, which was not updated by your employer in their TDS return that they filed with the Income-tax Department via NSDL.

3.     Your employer did not quote the TDS details like Bank Code, like Bank Code, Challan Number etc. properly in their TDS return. 

·         Reason 2: Wrong data in Income-tax Return Wrong data in Income-tax Return (Difference in total Income as per ITR-V and notice of demand) While filing the return you had entered correct details & your tax was also calculated properly and the same details are reflecting on your ITR-V. But due to some mistake the amounts in ITR-V and your Income-tax return differs and therefore the demand. 



1.    TDS Mismatch 

·         Check the Tax Credit claimed in the Income-tax Return and Credit actually allowed by the Income-tax Department. If you want to cross check your Tax Credit then make an application with TIN Facilitation Centre (TIN FC) for Form No. 26AS (your tax credit statement issued by Government via NSDL). List of TINFC is available on Cross Check TDS details considered by you and that mentioned in the Intimation letter received by the Income-tax Department. 

·         Take photocopy of all the TDS Certificate on which you have relied and submit the copy of the same along with a covering letter (enclosed) to the concerned Income-tax Assessing Officer. 

2.    Wrong data in Income-tax Return 

·         Compare your ITR – V and Demand Notice and find the head of Income in which there is a difference 

·         Make a Rectification Application by writing a letter to the concerned Income-tax officer who has raised the demand requesting him to correct the mistake (Sample Letter enclosed). Do remember to give all relevant documents viz. Form 16, ITR-V, Bank statements etc for the corresponding year.


Please Note: This advice is of a general nature only, is not intended to be complete or definitive. It is not a substitute for professional and expert advice, and may not be appropriate or sufficient for your particular case. You should obtain professional advice before taking any action in relation to any matter referred in this letter to address your particular situation.






Date: _____________________ 





Income-tax Officer (CPC) 

Post Bag 1 Electronic City Post Office

Bangalore - 560100 


Sir, Re: Your notice of demand for the A.Y. 2009-10 Communication Reference number: CPC/0910/_________________________ PAN: __________________- request regarding. 


Sub: Request to check the details at your end due to difference in Total Income / Deduction and Tax thereon considered by you and reported by me. 


I am in receipt of Demand Notice for Rs. ____________ for the A.Y. 2009-10. In this connection I would like to mention that there appears to be some error in Income considered by you and as reported by me in my Income-tax Return. 


The Total income for the said year is Rs. ____________ (which is clearly reflected in my Income-tax Acknowledgement ITR-V) and the total Income considered by you is Rs. _____________. 


There seem to be an apparent error in the in the demand raised by your good self. May I therefore request you to kindly rectify the mistake and till then I further request your good self to keep the said demand in abeyance. The income reported by me can be easily verified from ITRV attached herewith.


 I once again confirm that I have reported all the Income chargeable to tax during the said year and no Income has remained to be offered for taxation. 

I hope that you will take an early and necessary step to rectify the same. 


In the ending, I request you to kindly let me know, if I can provide you with any other details for verification and necessary rectification. 

Thanking you, 



Yours faithfully, 




Enclosed: Copy of Form 16 – for F.Y. 2008-09 

Copy of ITRV for F.Y. 2008-09

Copy of Bank Statement for F.Y. 2008-09 (period 1st April 2008 – 31st March 2009)