Several taxpayers have received lower amount of tax refund than what they had claimed while filing income tax return (ITR) for FY 2020-21, as reported by ET. This is because the new income tax portal has not taken into account the full tax credit available in the Form 26AS for these tax return filers.
In this regard, the reason given by the income tax department in the intimation notice is that Form 26AS does not contain/contains partial amount of TDS with respect to the TAN mentioned in schedule TDS 1/TDS 2/TCS.
Whereas, TDS amount claimed by these ITR filers is equal to the amount showing in their respective Form 26AS. It seems that data shown on one section of the portal is not being taken into account fully by the processing software.
Further, tax experts and chartered accountants say that something like this happening is rare and does not normally happen during ITR filing season.
Abhishek Soni, CEO, Tax2win.in an ITR filing website says, “We have seen more than 10 cases where full TDS credit, as shown in Form 26AS, is not given by the income tax department at the time of processing of ITR. Due to this, individual taxpayers are getting less income tax refund than what is actually due to them.”
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