U/s 139D of the Income-Tax Act, 1961 – Extension of Facility to Taxpayers in Filing of Return in Electronic Form to Verify if Demand In their Case is Due to Tax Credit Mismatch On Account of Incorrect Furnishing of Specified Particulars and Submit Rectification Requests With Correct Particulars Of TDS/Tax Claims for Correction of these Demands

PRESS NOTE NO.402/92/2006-MC, DATED 17-4-2014

Detailed instructions have been issued by the CBDT to all the assessing officers laying down a Standard Operating Procedure (SOP) for verification and correction of demand by the AOs. As per this SOP, the taxpayers can get their outstanding tax demand reduced/deleted by applying for rectification along with the requisite documentary evidence of tax/demand already paid. The SOP also makes special provisions for dealing with the tax demand upto Rs. 1,00,000/- in the case of Individuals and HUFs in order to accommodate certain extraordinary situations. The SOP is expected to mitigate the long standing grievances of taxpayers by way of reduction/deletion of tax demands.

The CBDT has further noted that many taxpayers are committing mistakes while furnishing their tax credit claims in the return of income. Such mistakes include quoting of invalid/incorrect TAN; quoting of only one TAN against more than one TAN tax credit; furnishing information in wrong TDS Schedules in the Return Form; furnishing wrong challan particulars in respect of Advance tax, Self-assessment tax payments etc. As a result of these mistakes, the tax credit cannot be allowed to the taxpayers while processing returns despite the tax credit being there in 26AS statement. The CBDT, therefore, desires the taxpayers to verify if the demand in their case is due to tax credit mismatch on account of such incorrect particulars and submit rectification requests with correct particulars of TDS/tax claims for correction of these demands. The rectification requests have to be submitted to the jurisdictional assessing officer in case the return was processed by such officer, or the taxpayer is informed by CPC, Bangalore that such rectification is to be carried out by Jurisdictional assessing officer. In all other cases of processing by CPC, Bangalore, an online rectification request can be made by logging into e-filing website http://incometaxindiaefiling.gov.in as per the procedure given in detail in its Help Menu.

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0 responses to “Reduce / Delete outstanding demand outstanding against Assessee -CBDT prescribes Procedure”

  1. Indian says:

    Two Outstanding IT demands appeared online – for old years 2004 and 2006 (these years online filing did not exist).

    Both were promptly paid. Proofs sent to IT Department.
    But even then outstanding demands were not removed. WHY? No one knows.

    When the proofs were sent once again. One demand was removed, but another one remained as is. And after a week, 2 completely New Demands appeared. No explanation nothing. WHY?

    The entire thing looks like a mystery.

    Even after paying random demands, they are not removed. And newer ones randomly appear. Some of 10 years ago. WHAT EXACTLY IS GOING ON in IT Dept?

    What should be done? Went to IT Dept. They just keep saying come back later, give a letter – REFUSE to explain anything.

    If Genuine Tax Payer’s are harassed like this. WHAT’s THE POINT?

  2. bijoy says:

    CPC has calculated an outstanding tax demand although I paid the amount along with interest in full.I rectified that and submitted online.
    They reviewed the rectification and again determined an outstanding tax demand and you konow this time what did they do-they calculated some amount along with interest which I already paid on time.
    I submitted the rectification second time and this time they again determined some demand and I am sure this time also it is wrong calculation.
    It seems they are determined to rob me at daylight.
    Can anyone rescue me from this day-robbery?

  3. m l mittal ca says:

    all the jurisdictional assessing officer should be allowed to rectified the mistake, even return has been processed at CPC. It will reduce pendency and tax demands.

  4. MCVashishta says:

    People says they were happy when they did not file the e-return. Now when e-return is filed there is mismatch of TDS and demand is raised. Income tax deptt do not have any mechanism to force the parties to file their TDS retun properly. Govt deptt do not file salary/upload TDS data in time or at no time. All banks do not follow procedures when we ask them TDS is not appearing in our 26AS they are ingnorant what we are saying. Even copies of TDS certificates are sent to CPC demands are not deleted. Income Tax Deptt should rely on the certificate given by Chartered Accountants that proper tax has been paid.

  5. MCVashishta says:

    People says they were happy when they did not file the e-return. Now when e-return is filed there is mismatch of TDS and demand is raised. Income tax deptt do not have any mechanism to force the parties to file their TDS retun properly. Govt deptt do not file salary/upload TDS data in time or at no time. All banks do not follow procedures when we ask them TDS is not appearing in our 26AS they are ingnorant what we are saying. Even copies of TDS certificates are sent to CPC demands are not deleted. Income Tax Deptt should rely on the certificate given by Chartered Accountants that proper tax has been paid.

  6. MCVashishta says:

    People says they were happy when they did not file the e-return. Now when e-return is filed there is mismatch of TDS and demand is raised. Income tax deptt do not have any mechanism to force the parties to file their TDS retun properly. Govt deptt do not file salary/upload TDS data in time or at no time. All banks do not follow procedures when we ask them TDS is not appearing in our 26AS they are ingnorant what we are saying. Even copies of TDS certificates are sent to CPC demands are not deleted. Income Tax Deptt should rely on the certificate given by Chartered Accountants that proper tax has been paid.

  7. MCVashishta says:

    People says they were happy when they did not file the e-return. Now when e-return is filed there is mismatch of TDS and demand is raised. Income tax deptt do not have any mechanism to force the parties to file their TDS retun properly. Govt deptt do not file salary/upload TDS data in time or at no time. All banks do not follow procedures when we ask them TDS is not appearing in our 26AS they are ingnorant what we are saying. Even copies of TDS certificates are sent to CPC demands are not deleted. Income Tax Deptt should rely on the certificate given by Chartered Accountants that proper tax has been paid.

  8. vswami says:

    What is the rationale behind the prescription of a max. of Rs 1 lakh for SOP to apply? Is it not a fact given publicity within living memory that huge demands came to be slapped on high end salaried and other taxpayers, for no fault of them, for the stupid reason of a mismatch or even total absence of TDS data on the dept.’s system /CPC. If so, there seems to be every sane reason why SOP should apply,especially to all genuine cases of grievance, with no such mindless prescription of a max. The directive, it is to be urged, does require an appropriate modification, across the board, sooner than later.

  9. S Balasubramanian says:

    The Department may also be requested to send emails (instead of written communication and email ID being available) to assessees to rectify their returns in case of such errors. This will greatly reduce the time consumed in filing rectification requests.

    S Balasubramanian
    AAEPB7632F

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