Income Tax Refund Shortage: How Do I Fix TDS Discrepancies and Complete Rectification?

Dear experts, we encountered an issue while filing the IT returns for the financial year 2012-13. We received a refund amount of Rs.27,550/- last year, which is short by Rs.74,751/-. Upon analyzing the intimation letter and 26AS statement for the financial year 2012-13, we found a discrepancy in the TDS values taken into calculation by the IT department. In our 26AS statement, our TDS amount shows a value of Rs.3,88,038/-, whereas in the IT department's intimation letter, the considered TDS value is Rs.3,13,287/-. This discrepancy resulted in a shortage of Rs.74,751/- in our refund amount.

We attempted the rectification process on the IT website. However, when the first option "Taxpayer is correcting data for tax credit mismatch only" was selected, it only allowed rectification for 10 companies' entries, whereas we had 15 entries to be rectified. Further, we are unsure whether we need to input the TDS list for all clients or only for those requiring rectification. Can you guide us on how to proceed? Your prompt response will be greatly appreciated.

Thanks, Maya

Dear Maya,

Firstly, it's important to understand that the rectification request under section 154 of the Income Tax Act, 1961, allows a taxpayer to rectify any mistakes apparent from the record. The process you've followed so far is correct. However, the limitation you're encountering is due to the Income Tax Department's e-filing system, which allows correcting a maximum of 10 entries at a time.

Here's a step-by-step guide on how you can proceed:

1. Initiate the rectification process again and select the option "Taxpayer is correcting data for tax credit mismatch only".

2. Correct the TDS details for the first 10 entries that need rectification and submit the request.

3. Wait for the rectification order for these 10 entries to be processed and the changes to be reflected in your 26AS.

4. Once the rectification order is passed and changes are visible in your 26AS, repeat the process for the remaining 5 entries.

Regarding your query about whether to input the TDS list for all clients or only for those requiring rectification, you only need to rectify the entries that have mismatched data. You do not need to correct entries that are already correct.

Remember, rectification under section 154 should be requested within 4 years from the end of the financial year in which the order sought to be amended was passed.

Also, in the future, to avoid such discrepancies, make sure the TDS details in your return match with the TDS details in Form 26AS before submitting your return.

I hope this resolves your query. If you have further questions, please feel free to ask.