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Revised Return due to TDS Mismatch

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Sakshi Shah

139(5)
143(1)(a)
Income Tax Filing
IT Notice
Last updated on April 7th, 2021

Once the assessee files the Income Tax Return, the income tax department may issue a notice for various reasons. One of these reasons is the difference in the amount of TDS as per Income Tax Return and TDS as per Form 26AS. Moreover, it reflects the gross amount of income, amount of TDS deducted and the section under which TDS is deducted. When there is a difference in the amount of income as per ITR and gross amount as per the Tax Credit Statement Form, you will receive a notice for the mismatch. The assessee should rectify the TDS mismatch and file a Revised Return under section 139(5).

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Example

Notice sec 143(1)(a)(vi)
Notice sec 143(1)(a)(vi) - Form 26AS
Notice sec 143(1)(a)(vi) - ITR Form

Prepare and File Revised Return for TDS mismatch

Given below is the procedure to file the revised return for mismatch in TDS:

  1. Download Utility

    Therefore, download the latest java or excel utility of the applicable ITR form the income tax e-filing website.

  2. Open the .XML file

    Open the .xml file of the original return in the utility.

  3. Tab – Part A General

    Under the tab ‘Part A – General’, move to section ‘Filing Status’. Enter the following details:
    a. Filed u/s – Select 139(5)-Revised Return
    b. If revised/defective/modified enter Receipt No – Enter the Acknowledgement Number of ITR-V of the Original Return
    c. Date of filing the original return (DD/MM/YYYY) – Enter the date on which the original return was filed

  4. Schedule Salary

    Under the tab ‘Schedule S’, enter the Salary details with the breakdown of Basic Salary, Allowances, Perquisites, Exempt Allowances, Entertainment Allowance and Professional TaxSection 139(5) - Notice section 143(1)(a)(vi) - Edit Salary Schedule

  5. Schedule TDS

    Under tab ‘TDS’, move to sections TDS1 i.e. Details of Tax Deducted at Source from Salary [As per Form 16 issued by Employer(s)]. Edit the details of TDS – enter the gross amount as per the Tax Credit Statement in column 4 (income chargeable under Salaries)

  6. Recalculate and Save

    Click on ‘Recalculate’ in the top row and then click on ‘Save’ to generate the XML.

  7. Upload XML

    Upload the XML on the income tax website. Login to your account on the income tax portal.
    Go to e-File > Income Tax Return, enter the required details, upload the XML and submit.

FAQs

What happens if I don’t respond to my income tax notice?

There is no way to reply after the time limit is over. The link for e-proceedings gets closed. If you do not respond to the notice within the allowed time limit, the income tax department will process the return after making an adjustment of the demand raised with the TDS credit available. They may also issue another notice to pay the outstanding demand.
The assessee can submit a Condonation Request on the income tax portal to borrow time for filing Revised Return. They need to provide a valid reason for the delay in filing ITR.

How do I correct a tax credit mismatch?

In case you received a notice from the Income Tax Department regarding a Tax Credit Mismatch, you will need to respond to it through the e-Filing portal by choosing the ‘Taxpayer is correcting data for Tax Credit Mismatch only’ under the options and fill in the relevant details.

Got Questions? Ask Away!

  1. Hey @TeamQuicko

    Can I file a revised return even after I have received a refund?

  2. Hey @HarshitShah

    Yes, you can revise your return and carry forward the trading losses even if ITR is processed and refund is received.

    Hope this helps!

  3. Hey @HarishMehta

    Yes, ITR is mandatory to file when you had done transactions in the respective financial year. If there are losses, you don’t have to pay Income Tax, but transactions have to be reported in ITR.

  4. Hey Team, do I need to e-verify Belated Return??

  5. Hey @TanyaChopra

    Yes, you need to e-verify the Belated Return filed after the due date. It will not be processed by the IT Department unless it is e-verified.

    You can refer to the below article to understand how to file and e-verify Belated ITR.

    Do let us know in case you have any further queries!

  6. Hey Team, good day!

    What are the consequences if I do not show Trading Transactions in ITR?

    Thanks in advance!

  7. Hello, So if I file a revised return, I’ll be eligible to carry forwarding losses. When can i set them off. and also if are any other benefits I am not aware off?
    I am new to filing returns hence such basic questions. :sweat_smile:

  8. Hey @Niraj,

    Carry forwarded losses can save you from paying heavy taxes in the future. For eg. If you fall in the 30% tax bracket, for every profit you make in the derivative market, 30% is the tax rate. Instead, if you have carry-forward losses from previous years, you have to pay tax only on the balance amount after the set-off of losses.

  9. Can I carry forward trading losses in case of a revised return?

  10. Hi @Joe_Fernandes,

    Yes, losses can be carried forward for a specific period as mentioned in the Income Tax Act, in case you have filed an original return within the due date.

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