Wrong demand raised by CPC, IT Department

How would you help ? Have not received any reply till now.

Could you please tell me why cpc has raised this demand ? 

Is it a mistake on their part and it originates from their treating year of TDS by Bank as 2019 in place of 2020 as clearly shown in 26AS?

Please reply.

Dear Amit Kumar Das,
I'm also having same type of DEMAND for the same year of IT return as your case. I could not understand this mismatch. Form 26AS acknowledges that the TDS deducted not in 2019. But the cpc report says the TDS is deposited in the year 2019 but both are reports generated by Tax departments.
Request someone from IT Dept to rectify this error or explain us how to rectify/respond this DEMAND.

Hi all, 

I also have a similar demand amounting to 72,760/-. Tax was deducted at source by two banks under section 194A for FY 20-21 AY 21-22 and this amount also is prefilled. Form 26AS shows this correctly.

While filling Schedule TDS2, I only fill Tax credit relating to Self and not Other person, In the next popup I  fill Unclaimed TDS brought forward  FY2019  is zero,"TDS of the current Finacial year ( TDS deducted during the FY 2020-21) Deducted in own hands Rs.63762-- this amount is again prefilled. For the second bank it is Rs.8907/- making a Total of Rs.72,760/- ( after rounding off) Next"TDS credit beng claimed this year  Claimed in 0wn hands Rs. 63672 - again prefilled. For the other bank the prefilled amount is Rs.8907/= OK, it is all correct. and everything is shown correctly in the preview before uploading. The downloaded ITR2 also shows this correctly. It appears that the processing software is faulty and takes it as TDS for FY 2019. i applied for rectification "Reprocess" but got back the same demand. Shouldn't CPC manually check form 26AS once a rectification request is made?. Whom should I notify now?

Hi All, 

I also received a demand from income tax for AY 2020-2021 , since yesterday i cannot see that under "Response to Outstanding demand " after login into income tax site.

I also have same questions that why they have mentioned  "Year of Deduction of TDS/ TCS" as 2019I. I will be raising a rectification request and if it din't helped then would raise a grievance on the portal under "Submit Grievances".

As stated in my previous post  on my rectification request to "Reprocess", I received the rectification Order u/s 154 / Demand notice repeating the same demand on 19Jan 2022.

On 10nFeb 2022,  I efiled my response to the outstanding demand ( see attachment) refuting the demand in full  choosing the "Other" as reason and stating as follows. 

quote "TRACES 26AS for FY2020-21 AY 2021-22 correctly shows Tax Deducted at Source u/s 194A and deposited by State Bank of India TAN: MUMS86160E is Rs.8907/- and by Karnataka Bank TAN: BLRK00228E is Rs.63762/-

This Tax credit of Rs72669/- is correctly claimed in ITR2 for AY 2021-22.

Schedule TDS in the e-filed ITR2 correctly states TDS brought forward from FY2019 is 0(zero), TDS deducted during current financial year FY2020-21 and TDS credit claimed in own hands totaling to Rs.72669/- [ Rs.63762 (Karnataka bank) + Rs.8907/-(SBI)] for this year for the corresponding income offered for tax this year (FY 2020-21 AY 2021-22).

The processing software in the demand incorrectly puts the year of deduction of TDS/TCS as FY2019 and raises this untenable demand. Please correct the software and ask it to look for TDS deducted for FY 2020-21 AY 2021-22 and not FY 2019.

 By virtue of the fact that the TDS Tax credit claimed is correct, and nothing is due, no interest is payable on the wrong demand.

CPC may please manually check form 26AS for FY 2020-21 AY2021-22 and withdraw this wrong demand causing mental agony and harassment to the assessee.

Note: This rectification order and repeat demand was received by email on 19 Jan 2022 5:18 PM but rectification request status still shows “Under processing, Jan19,2022”.  I am unable to raise a second rectification request since the e-filing website says “You are not allowed to submit a rectification request unless the previous request is processed.” So please do not ask me to file a rectification request again. It is not possible. e-filing website forbids it." Unquote

On 31 Mar 2022, I receved thr rectification order u/s 154 stating 

“Mistake rectified for A.Y. 2021-22.
There is no payment due.”

Dear Friends, I am really sorry to say that during practicing last 22 years and filing almost 500 Return every year, I have not seen such third class software, where thousands problem found, where as CBDT is head bend  on deadline of e-filing date. There is no scope as such to contact with the right person of CPC( Though they claim that all query is resolved). Infosys running this system since two years but still now their system is neither user friendly nor accurate. E filing becomes a night mere for professional since two years.

Whether We file " Reprocess" or " Rectify" the return we don't get any logical solutions, thanks to the "Artificial Intelligence" of System which says " Whatever is calculated by system is Correct"

Dear All,

Was there an official response from CPC for this issue. 

My father, a pensioner received this same demand through email with the deduction date mentioned as 2019 for the assessment year 2021 -  2022. 

When I login into the ePortal, the demand is not there so my assumption is that it is a wrong demand. Please can anyone confirm.

Thank you,

I am Avishek Chatterjee, Assistant Professor Grade - I, IIT Kharagpur.

I am suffering from this issue since January 2022. I filed rectifications 4 times, grievances many times, and had telephonic conversations an uncountable number of times. They have not corrected their mistakes yet. Finally, I have decided to fight against them through social platforms. Today I have created a new YouTube channel for this purpose.  

https://www.youtube.com/channel/UC7v3WPZQzXlj56DtKvggpng

Expecting to have your support.

Did you get any response from IT Dept? 

The income tax department is neither rectifying their mistake nor they are providing any explanation. Lastly, I have lodged a grievance at https://pgportal.gov.in which is still under process. 

I applied for rectification 4 times. Every time they raised the same wrong demand. Then I lodged a grievance at pgportal.gov.in. After 1.5 months, this grievance was closed stating that the issue is under process. I rated this resolution as a poor one (1 star) in pgportal and appealed to the nodal authority. After this within one day, the wrong demand was withdrawn finally yesterday.

Have raised complaint 2 times on pgportal. Every time they close it by saying "your query is for return processing, intimation will be sent once return is processed". However, portal didn't show anything in progress. Don't know how to proceed here. 

After 6 months.. Issue got resolved yesterday. They have given revised intimation under section 154. If anyone of you has this issue. Pls connect with me, will be happy to help.