TDS credit to be allowed if difference between TDS claim and TDS in AS-26 data does not exceed Rs. One lakh

TDS credit to be allowed if difference between the TDS claim and matching TDS amount reported in AS-26 data does not exceed Rs. One lac.

Section 143 of the Income-tax Act, 1961 Assessment  General Processing of returns of assessment year 2011-12  Steps to clear backlog

Instruction No. 01/2012 [F.NO.225/34/2011-ITA.II], dated 2-2-2012
The issue of processing of returns for the Asst. Year 2011-12 and giving credit for TDS has been considered by the Board. In order to clear backlog of returns, the following decisions have been taken:
(i) In all returns (ITR-1 to ITR-6), where the difference between the TDS claim and matching TDS amount reported in AS-26 data does not exceed Rs. One lac, the TDS claim may be accepted without verification.
(ii) Where there is zero TDS matching, TDS credit shall be allowed only after due verification. However, in case of returns of ITR-1 and ITR-2, credit may be allowed in full, even if there is zero matching, if the total TDS claimed is Rs. Five thousand or lower.
(iii) Where there are TDS claims with invalid TAN, TDS credit for such claims are not to be allowed.
(iv) In all other cases, TDS credit shall be allowed after due verification.

One thought on “TDS credit to be allowed if difference between TDS claim and TDS in AS-26 data does not exceed Rs. One lakh

  1. What about Assessment year 2010-11? In the case of my wife’s IT returns, there is a discrepancy between TDS on FD interest done by Bank and form 26AS, which shows no credit at all. And there is a demand for Tax by the taxman.

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