Outstanding Tax Demand – AY 2008-09

POSTED BY Prashanth Dengody ON May 6, 2013 2:47 pm COMMENTS (23)

23 replies on this article “Outstanding Tax Demand – AY 2008-09”

  1. Prashanth Dengody says:

    Dear Ashal,

    Thanks for sparing time to answer my questions.

    I think I mentioned it in a confusing way. The 80E deduction document was submitted to my employer in January 2008 who calculated my tax considering the deductions for FY 2007-08. My employer has given me the form 16 which mentions that 80E deduction is eligible.

    My tax filing guy just filed the returns based on the facts verified & mentioned by my employer in Form 16. So I had not submitted any document or claimed 80E separately during returns filing. Yes I understand tax guy filed it late. However other deductions like ULIP, LIC, PF have been considered only leaving out 80E deduction of 40000. Proofs for all other deductions were submited together to the employer to enable them to calculate year-end tax liability.

    Please let me know how is that possible?

    regards,
    Prashanth

  2. Dear Prashanth, as the ITR was filed after due date, the section 80E related deduction has been dishonored. Please contact your AO to get it rectified.

    Thanks

    Ashal

  3. Prashanth Dengody says:

    Thanks Ashal. That year I had filed my returns through an external tax filing guy. As per my acknowledgement it was filed on 11th Aug 2008.

    AS per the Intimation U/S 143(1) notice I received now, the due date for that year was 31-07-2008. So the tax guy has not filed it on time?

    Also this intimation says that Date of Order as 24-03-2010. Does it have any significance? My understanding is that it is the date when IT dept raised outstanding demand. However, I have not received any communication about it until April 2013 when I received my first outstanding demand notice.

    The proof of 80E deductions is Form 16. Is that enough to go to AO?

    Regards,
    Prashanth

  4. Dear Prashanth, did you filed your ITR 0 2008-2009 within due date or after that? Please Contact your AO with the documents you have to prove that 80E deduction.

    Thanks

    Ashal

  5. Prashanth Dengody says:

    Hi Ashish/Ashal & Members,
    I have finally received the Intimation U/S 143(1) from CPC Bangalore about my outstanding tax demand notice for AY 2008-09. From this I can make out that they have not considered Rs 40000 deduction allowed under 80E (education loan). So it is not about the incorrect tax credit from one of the firms I had worked for that assessment year.

    Hence IT department has calculated tax & some interest (about Rs 1750) & demanded about 8000 rupees from me as outstanding tax for AY 2008-09.

    Is there a way for me to challenge this now or I have to pay up? The only proof that I have for that Rs 40000 is my Form 16 claiming that Rs 40000 is eligible for deductions under 80E. Back then I had submitted a letter from bank confirming I had paid 40000 towards loan interest to my employer. I do not have it now. Employer had accepted that letter & bank statement & accordingly generated my Form 16.

    Please suggested is there any ground for rectification of this tax demand?

    Thanks a ton.
    Prashanth

  6. Prashanth Dengody says:

    Thanks Ashal & Ashish for your inputs & guidance. I will post the outcome of my case once I have solution.

    Hopefully it is a positive outcome.

    Regards,
    Prashanth

  7. Dear Prashant, if the tax was deducted properly & deposited also. Now after the rectification (if done by that 3rd party), the tax evasion does not hold ground & accordingly, there ‘ll be no penalty on you.

    Thanks

    Ashal

  8. Dear Prashanth, in case the original ITR was filed offline, you w’d have to file offline. In case you had filed online, yes, you can filed revised online too.

    Thanks

    Ashal

  9. Prashanth Dengody says:

    The Outstanding Tax demand is Rs 8000. I think it is due to penalties & interests. The worst part is I still do not have exact detail as to what the tax demand is about. This is because CPC has not yet sent me the breakup the tax demand & why is it being demanded. So all this investigation was from my own assumption that it is due to that mismatch in tax credit.

    I have reached to my ex-company’s finance department. They asked to send the Form 16 etc. So let me see what they have to say about that.

    If rectified, I think i can still refile the ITR online. Isnt it?

    regards,
    Prashanth

  10. Dear Prashanth, a possible reason of the problem, the correct entries were not made during filing of TDS return & that’s why, your PAN is not coming up during your checking. In case old CA is not possible, please contact a new one to handle your case. As the amount involved is small, i’m not sure what ‘ll be the fee for the CA & ‘ll it be cost effective to you?

    Thanks

    Ashal

  11. Prashanth Dengody says:

    Thanks Ashal. I will contact the company & try to explain the situation. Isnt my Form 16 which mentions that the company has deducted the tax (TDS) enough proof that company has indeed deducted tax from me? Of course I cant prove if they deposited it correctly with the govt or not. (Again they claim to have deposited as per my Form 16 as there is Challan number, bank BSR code, date etc.)

    I know it is a long shot at sorting it out after 5 years. I am not sure how the company will oblige too. Regarding reaching the same CA, i have emailed him as i do not have any other contact. He was one of those guys who came to our company & filed ITR’s in mass for entire office. That was my first IT filing. However last 3 years i have filed them myself online & I have track of them.

    anyways I will post the outcome later.

    Regards,
    Prashanth

    1. Ashish says:

      Dear Prashanth,

      Were you able to check the actual status of your income tax using the above link and BSR codes etc? You may get to know the root cause of the problem.

      Ashish

      1. Prashanth Dengody says:

        Thanks Ashish for the links . I donot know how I missed your reply yesterday. I checked the Challan status using CIN view (Using Bank BSR code, Challan serial number & date of deposit). I can see that the company has deposited & it has been received by TIN as well.

        However I am unale to see the amount that they deposited. I tried verifying the amount seen on my Form 16 (Rs 2034) it says amount does not match. So how can I verify the amount deposited. Similarly there is no mention of my PAN anywhere. Just company TAN. It has been deposited under major head “0020-corporation tax” , Minor Head “200-TDS/TCS”

        So I cant see how I can verify my PAN. Help me.

        Regards,
        Prashanth

        1. Ashish says:

          Dear Prashanth,

          The Amount mismatch must be coming cos the company must have paid the tax for various individuals in a single challan. Try using the TIN view and you may get the details of amount paid the company. Then come back to the CIN view with actual amount paid by the company. I think, you may still get some details on that.

          Meanwhile, since you have already got in touch with the company, you shall get some response from their as well.

          Ashish

          1. Prashanth Dengody says:

            The finance department from my ex-company has forwarded my email promptly to a third party that manages the payroll & accounting.

            I had sent the Form 16 copy & annual Form 26AS for their reference. Now I am waiting for an answer.

            Incase they find an issue (say wrong PAN quoted or failing to correctly deposit,etc) who will bear the penalty for all these years of delay? Incase it is clearly a mistake from the company, then I can push them to rectify it & I am sure they will oblige.

            However, if it falls in no man’s area, I think it is my headache to pay-up & rectify 🙁

            Biggest lesson learnt – Go through the Form 26AS that Tax Dept sends annually. I had received & saved the Form 26AS. I saw the amount too, however I never tallied it against Form 16, Assuming that Finance dept in a MNC cant make mistakes!

  12. Dear Prashanth, when your form 26AS data is not matching, it translates into a simple thing that tax was deducted but not credited against the correct PAN (your PAN). Option to you is either contact old company & make it rectify it’s mistake else pay the demanded tax as you can not prove that indeed the tax was deducted. Still if you want to fight it out, contact a CA (if possible contact the old one) & ask him to file your application along with the form 16 you are having.

    Thanks

    Ashal

  13. Prashanth Dengody says:

    Thanks Ashal for the reply. No one else that I know has received such notice.

    As mentioned, I have left the organization about 5 years ago & the organization has undergone lot of changes as part of corporate restructuring. So following it up with them is a tedious process.

    Is this the only option? Is there a way we can re-file this & check. Since the company seem to have correctly deposited (as seen from the Form 16 atleast), is there a way I can follow up through IT dept itself.

    Apart from raising it through my previous company, what are my options? if that is the only way out, I will have to do it.

    Regards,
    Prashanth

  14. Dear Prashanth, now you know the answer clearly. As your form 26As is not showing the details of 1st Co related TDS, this is the reason of notice. Please contact the first co. & ask to update the correct TDS. if possible to you, please check with your friends/colleagues from the same company who like you were in same situation & check had they also received such tax demand notices?

    Thanks

    Ashal

  15. Prashanth Dengody says:

    Dear Ashal,

    Thanks a lot for trying to answer my query.

    I had filed through a CA who manually filed it. Hence I cant track the the filing online. But I have the ITR filing acknowledgement with IT Dept’s seal.

    Also to provide a background – I had two form 16’s for that year as the company I was working then, split into two separate entities. So I have a form 16 which is for parent company from May to Oct 07 and another one from Nov 07 to Mar 2008.

    The CA who filed my ITR has correctly accounted for taxes deducted by both the companies. However when I was verifying the form 26AS for that year (07-08), I am only seeing the tax credit from second company (Nov 07 to Mar 2008). The amount on form 26AS is Rs1920. The tax of Rs 2034 deducted by parent company (May07-Oct-07) is not seen on my form 26AS. However my form 16 from this company shows that TDS is deposited to govt & Form 16 provides the Cheque no, BSR code of bank & even date of deposit.

    I am wondering if this is the cause of the descrepancy? What can I do to rectify? The parent company is a multinational & has undergone several transformations, relocations & renaming. Though it very much operates in Bangalore with multiple offices even now, tracking & reaching to their finance department is a tedious task.

    Thanks,
    Prashanth

    1. Ashish says:

      Dear Prashanth,

      I have the same situation as you are, though I had received an outstanding tax notice about a year and half back. Similar to you my tax was filed by a CA and he miscalculated and asked me to pay some 21000 as tax, which he paid and I have the acknowledgement slip and other details. Unfortunately at that time, I was not into personal finance / taxation and did not care about the same. Realised only when I got the notice and searched the whole. What I found was that though my PAN number was correctly quoted in Tax challan, Bank mistakenly quoted the wrong PAN and tax never got credited against my PAN to IT deptt. I got a notice of about Rs.8000, though I had actually paid 21000. So I am eligible to get a refund.

      Now you may ask me how did I got to know that PAN was quoted wrong. Well you can always check out the same through internet. All you need to have BSR code of the bank branch where tax was paid, Challan tender date, Challan sr. no. and amount paid. Since I my case I myself had paid the tax, I had all the details. In you case you need to look at your form 16 and see if you could find such details there. Otherwise, if you could get TAN no. of your earlier company (must be stated in Form 16) and Challan tender date, you can get full details of the tax paid by the company to IT deptt on your behalf.

      Below is the link to check out the same:

      https://tin.tin.nsdl.com/oltas/

      Trust me its a very useful link and from here I could gather the information on wrong PAN stated. Now I have filed a complaint to IT deptt to rectify the same in their records. If you could fine such details, you may als0 log in your complaint online and see if there is any result. To file a complaint, see the below link:

      http://pgportal.gov.in/

      (this is a public grievance portal by Govt of India and cover lot of Govt Deptt).

      I hope this information would be helpful to you and you can get some favourable response.

      Ashish

  16. Dear Prashanth, have you received the assessment order from the Income Tax? Did you E-filed for the mentioned AY?

    Please clarify.

    Thanks

    Ashal

  17. Prashanth Dengody says:

    Hi,
    I have suddenly received an Outstanding Tax demand now from CPC Bangalore for AY – 2008-09. The amount is Rs. 7920. However I have an ITR filing acknowledgement filed by a CA with IT Department’s stamp & receipt serial numbers. It clearly mentions that I have paid a total TDS tax of Rs 3954 while Tax payable was Rs 3001. So I was supposed to get a refund of Rs 953 which I never got. Forget the refund, now I have received outstanding demand!

    I have raised a request through CPC-Bangalore’s call centre to provide me the break-up as well details on what is that outstanding demand about. I raised a request on 1st April 2013. However 4 times I called in last month, they said that they have system issues & they will email the details very soon. Today suddenly they said they have emailed successfully on 22nd April. I have not received any such email. So I raised the request again. I am promised that it will be sent to me again in 1 weeks’ time.

    In the meantime what are my options? I have my Form 16 for that year; I have my ITR filing acknowledgement too safe with me. I want to get this sorted as soon as possible.
    Regards,
    Prashanth

  18. Dear Prashanth, what’s the query? Please repost it here as reply.

    thanks

    Ashal

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