notice of demand u/s 154

[Guest]

i have received a demand u/s 156 under which i have to pay some x amount . The demand is raised under regular  assessment but in the income tax computation form i  their  i have not received a credit of full amount of tds . whereas i have already filed rectification u/s 154  and its also reflecting in 26AS

My question is that can i  ask A.O to adjust the same against the Tds amount and balance to refund.

[CAGOPALJI AGRAWAL]

Yes, you should again file the response in compliance of the demand alongwith the copy of earlier application.

It is very unfortunate that the rectification applications are not acted upon causing a lot of hardships to the assessee.

AI Summary

Adjustment of tax demand against TDS credit can be requested, attaching rectification proof and seeking refund of the balance. Taxpayer received a demand under regular assessment despite a TDS credit shown in Form 26AS arising from a filed rectification under Section 154; the recommended response is to file a compliance reply to the demand attaching the earlier rectification application and evidence of TDS, requesting adjustment of the demand against the TDS credit and refund of any balance, while pursuing follow-up due to administrative delays.