Reason for Mismatch of TDS & Correction Statement

• May 7, 2020
• CA Chandan Agarwal's Office

MISMATCH OF TDS

1. A major problem noted across the country is that of mis-match of TDS payments claimed by the deductees in their returns of income vis-à-vis the TDS payments reflected by the deductors in their e-TDS returns and also the non reflection of the TDS payments in the system, in case the e-TDS returns have not been filed by the deductors.

2. As per the present procedure, all payment of Direct Taxes, either by way of TDS / TCS, Advance-tax, Self-Assessment Tax and Regular Tax are uploaded to the credit of the concerned assessee in the computer systems. The Assessing Officers give credit to the taxes, when they are uploaded to the account of the concerned assessee through the national network of the Income-tax Department. In case of TDS / TCS, unless the deductors correctly upload the details of the deductions including the PAN and the amount, the taxes cannot be given credit in the account of the concerned deductee.

3. In all cases where there is a mis-match, the tax credits cannot be given, resulting in withholding of refunds and also creation of infructuous demand.

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