TDS credit not given in ASS order

Hey Manoj, this kind of TDS credit mismatch due to wrong TAN entry in the ITR is a fairly common issue. Here's a step-by-step guide to resolve it:

Issue Recap:

• Wrong TAN of deductor entered in ITR1 for AY 20-21.

• Resulted in a demand in the order under Section 143.

• You filed a rectification.

• Now order under Section 154 received again showing tax credit mismatch with Form 26AS.

• Form 26AS shows correct TAN and TDS credit.

• The message says:
  "Form 26AS does not contain amount of TDS/TCS with respect to the TAN mentioned in schedule TDS1/TDS2/TCS."

Why this happens:

• The TDS credit on the correct TAN in Form 26AS is not getting matched with the TAN mentioned in your ITR.

• The income tax system tries to match TDS details based on the TAN in the return.

• Since the wrong TAN was entered in the return, the credit is not getting linked, causing the demand.

How to solve this:

1. File a Revised Return (if within the timeline):

   • Correct the TAN in the revised return.

   • Upload the correct details to match Form 26AS.

   • This usually resolves the credit mismatch as the corrected return TAN will match the Form 26AS TAN.

2. If Revised Return not possible (due to time limits):

   • File a Rectification Application u/s 154 citing the exact reason:

     • That the TAN was wrongly mentioned in the original return.

     • The TDS credit exists in Form 26AS for the correct TAN.

   • Attach proof (Form 26AS showing the correct TAN & TDS).

   • Request correction of TAN in the records for credit matching.

3. Contact CPC/ITD:

   • If rectification fails repeatedly, you may have to raise a grievance on the Income Tax e-filing portal.

   • Explain the TAN mismatch issue and provide Form 26AS details.

   • Sometimes manual intervention is needed at CPC level.

4. Keep Documentation Ready:

   • Copies of Form 26AS showing correct TAN and TDS.

   • Copies of original ITR with wrong TAN.

   • Copies of revised ITR (if filed).

   • Copies of rectification applications filed.

Additional Tips:

• Always cross-verify TAN and TDS details before filing returns.

• Download and check Form 26AS before return filing to ensure TANs and amounts match.

• If you plan to file revised return, do it ASAP (within time limits).