Clarification on TDS Demand Raised for Financial Year (FY 2010-11)

[Ramanathan Seshan]

Dear Members,

As you're aware, the recent amendment introduced through the Finance Act has made TDS filings up to FY 2018–19 time-barred, meaning we can no longer file correction TDS returns for those years.

We had filed a correction TDS return for FY 2010–11, which initially showed a demand of ₹10,000 towards interest on short deduction. There were no other outstanding demands at the time. However, after the correction TDS return was filed on 29th March 2025 and got processed on 31st March 2025, a new demand of ₹15 lakhs has been raised under 'short deduction.' This did not exist previously.

Given that we are now unable to file any further correction TDS returns due to the time bar, we would like to seek clarity on the following points:

1. Is there any way to rectify or dispute this new demand under the current circumstances?

2. Can the authorities initiate recovery proceedings for a time-barred TDS matter?

3. Can we meet/write a request letter to jurisdictional AO or contact CPC for manual submission of return ?

Regards,

S Ram

AI Summary

Tax Professional Challenges Unexpected Rs. 15 Lakh TDS Demand After Correction Return Filing Under Section 154 A tax professional sought guidance on a sudden Rs. 15 lakh TDS demand raised after filing a correction return for Financial Year 2010-11. Despite filing the correction return before the statutory time bar, a new substantial demand emerged post-processing. The response outlined potential remedies including filing a rectification request under Section 154, challenging the demand's validity, and submitting a detailed representation to the jurisdictional tax authority explaining the circumstances and seeking resolution.