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

[YAGAY andSUN]

Thanks for laying out everything so clearly — and yes, this seems to be a case not uncommon this assessment year, especially with multiple users (not just TCS employees) reporting TDS/TCS entries missing in CPC processing despite being present in Form 26AS.

Let’s walk through your issue step-by-step, and I’ll guide you on the best next steps — including whether it calls for revision or rectification, and which options to choose.

🔍 What Went Wrong?

From what you've shared:

• TDS is clearly visible in Form 26AS, so the credit exists in the records.
• You manually entered TDS in the Schedule "Taxes Paid" in ITR-2. ✔️
• Return was processed, refund issued only for TCS, and TDS credit was denied with the error:

"Form 26AS does not contain the TDS amount."

• The deductor name was missing, only TAN present in your ITR form entry. ❗️

Conclusion:
👉 This appears to be either a pre-fill error, manual entry mismatch, or an IT Department back-end mapping issue, which is not your fault.

Also note: you're not alone — as your shared article confirms, many taxpayers are seeing TDS mismatch notices this year.

🛠️ Why the mismatch happened:

Here are possible technical causes:

1. Deductor’s name not entered, only TAN — this can lead to CPC being unable to match it correctly, especially if ITD's backend expects both.
2. The quarter of deduction in the ITR may not match that in the TDS return.
3. TIN vs TRACES vs AIS sync issues — rare, but this year, reported by many.

🧾 What to Do Now — Rectification vs Revised Return?

Since:

• You have received the intimation u/s 143(1),
• And a refund has been processed,
  ➡️ You cannot file a revised return.

✅ You must file a Rectification Request under Section 154, using the “Tax Credit Mismatch” option.

📌 Steps to File Rectification:

1. Login to Income Tax Portal.
2. Go to e-File > Rectification > New Request
3. Choose:
   • "Order passed under section": 143(1)
   • "Rectification Request Type": Tax Credit Mismatch
4. In the next screen:
   • Select "Mismatch Type" as TDS on Income other than Salary
   • You’ll be shown the TDS entry claimed vs what CPC found
   • You may be asked to select the correct entry or upload supporting documents
5. Attach a PDF of Form 26AS showing the relevant TDS entry clearly
6. Submit the rectification request

⏳ Timeline:

• Rectification can be filed within 4 years from the end of the financial year in which the intimation was received — but for practical purposes, do it as soon as possible to prevent interest or demand notices.

✅ Optional but Strongly Recommended:

• In the ITR form, recheck that the TAN and quarter of deduction matches exactly with what is in Form 26AS.
• While re-filing under rectification (in case you need to upload corrected ITR JSON/XML), include both TAN and deductor name in "Taxes Paid" schedule.
• If possible, highlight the TDS row in Form 26AS PDF before uploading to make it easily visible to CPC processing.

📣 FYI — TCS & TDS Glitch:

Yes, as per the article you shared, even TCS-related entries are getting rejected, affecting employees of TCS and others. This appears to be a system-level issue, and the ITD or CPC may roll out bulk rectification or auto reprocessing later — but until then, individual rectification is the only safe approach.

🧾 Summary of Action Points:

Step	Action
✅	File Rectification u/s 154
➡️	Select “Tax Credit Mismatch” as the request type
📎	Attach highlighted Form 26AS showing TDS
📝	Double-check TAN, name, and quarter match
🕐	Do this ASAP to avoid follow-up notices

*** 

AI Summary

Tax credit mismatch: file a rectification request under section 154 to correct TDS/TCS credit discrepancies. Where intimation under section 143(1) has been received and a refund issued, a revised return is not permissible; the taxpayer must file a rectification request under the tax credit mismatch procedure (associated with section 154). On the e filing portal select Rectification > New Request, choose order passed under 143(1) and Tax Credit Mismatch, identify the TDS entry type, reconcile claimed versus CPC records, and upload supporting Form 26AS evidence. Ensure TAN, deductor name and deduction quarter exactly match the Form 26AS before submission.