The Income Tax department calculates your taxes using the information that you have provided in your IT return in the first stage at the CPC. But it will also look for discrepancies with other tax documents such as the Form 16 and Form 26AS. It may also be picked up for scrutiny, in which case, the Assessing Officer will make her own best estimates in substitution.
For various reasons, the department’s computations may not match with your own and your income tax refund may end up being less than what you expected.
A very common scenario is when the tax officials adjust your refund against some outstanding demand payable by you. As per Section 245, the official does not need to take your permission to make this adjustment. However, she must intimate you of an action under this section. Form more information on dealing with an intimation u/s 245, please click here.
In another scenario, there could exist a discrepancy between payment of Advance tax, self-assessment tax, TDS or other tax payments through challan 280 with the information reflected in your Form 26AS. If that is the case then you can follow the procedure detailed below:
- Login to official income tax portal.
- Navigate to “My Account” and click on “Tax credit mismatch”.
- If you find no reason to disagree with the determined mismatch, click on Agree and then file a revised return incorporating the correction recommended.
- If you do not agree with the mismatch, you will have to provide evidence that the tax credit you claimed is correct. In such a situation, the tax deductor has to fix TDS entries and revise the TDS return filed. Only when that is done can you ask the tax authority to correct the mismatch status display.
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