Less refund is processed

[Nanu Arora]

Filed ITR 2 for my friend. Their taxable income is zero. They had one TDS and one TCS entry as per the 26as. Both of them did not reflect in the Schedule Taxes Paid section so while filing the return so we had to manually add them. The return got processed today and they have refunded the amount of TCS but have mentioned in the intimation letter that Form 26AS does not contain the TDS amount. How is this possible?

- 26as

https://imgur.com/a/JmQOP5C

- Entered manually in the ITR form

https://imgur.com/a/RslilS8

- Intimation

https://imgur.com/a/eCDILpu

https://imgur.com/a/vgC8E42

- This is how the TDS form was filled manually, please check the boxes

https://imgur.com/a/ENZDWHQ

- In the IT portal the tax credit mismatch sections shows this https://imgur.com/a/sJeJ15R Please note that it does not have the name of the deductor. In the schedule taxes paid section also, there is only TAN number of the deductor and not its name. Can this somehow have caused this issue?

- Does Revision of return gets applicable to this case or Rectification of return? Within how much time do we need to file them?

If rectification then under which option https://imgur.com/a/KDtCxgH ??

As per income tax's link https://www.incometax.gov.in/iec/foportal/help/e-filing-manage-tax-credit-mismatch-faq

• If you have not received an intimation u/s 143(1), you can file a revised return; OR
• You can file a rectification request through Rectification request service. (Only if you have received an intimation u/s 143(1) >>>> In this case both intimation and refund has been received by the assessee.

- TCS employees are also facing a similar issue, it seems that issue is at income tax’s end

https://www.moneycontrol.com/technology/tcs-india-employees-get-tax-demand-notices-company-asks-them-to-wait-before-paying-up-article-12820942.html

What to do now?

Thank You

AI Summary

Taxpayers Face TDS Credit Recognition Challenge, Section 154 Rectification Offers Resolution Pathway A taxpayer encountered an issue with income tax return processing where TDS (Tax Deducted at Source) was not recognized despite being present in Form 26AS. The return was processed with only TCS (Tax Collected at Source) refunded, citing a mismatch in TDS entry. The recommended solution is to file a rectification request under Section 154 using the 'Tax Credit Mismatch' option within the income tax portal, attaching supporting documents like Form 26AS. This appears to be a systemic issue affecting multiple taxpayers this assessment year.