Income Tax Sending Massive Demand Notices to Tax Payers Due To System Glitch

[aam.aadmi]

A glitch in the Infosys managed CPC software has led to the consideration of partial/unrelated TDS amounts during the system based tax liability assessment, thereby resulted in taxpayers across the country receiving massive tax demand notices including penalties, despite the TDS being deposited on time and reflecting correctly in 26AS. This was finally admitted by the TDS Reconciliation Analysis and Correction Enabling System (TRACES) team (Phone: +91-120-4814600) when confronted and asked to clarify the same. They have advised waiting for a few days until the issue is resolved, as currently even filing a revised return is still displaying the partial/unrelated TDS amount and can result in rejection

 

[HumorSimpson]

Orindum minions be like

 

[Akki007k]

Same happened with me.
The income rax mismatch tool doesn't include the TDS collected for Jan, Feb and Mar 24.
So, ITR and 26AS have different TDS amounts.

 

[VicksJ]

I am not sure if it's a glitch, I also got demand notice and when I checked 26as, the TDS amount was indeed lesser as while filing ITR I relied on the ITS prepopulated figures for TDS which may be more than actual, hence the difference. The demand notice specifically tells which deductor it belongs to. I paid the amount promptly. Unless the amount in 26as is also wrong, I don't think it's a mismatch

 

[aam.aadmi]

The income rax mismatch tool doesn't include the TDS collected for Jan, Feb and Mar 24.
So, ITR and 26AS have different TDS amounts.

26AS is showing the correct TDS amount. ITR is displaying a lower TDS amount, and even though I manually corrected it, the resulting demand intimation shows that IT Dept has considered the lower TDS amount during their tax liability calculation, without bothering to verify the same in 26AS

 

[Akki007k]

Yes correct. Check Twitter. Lot of people have faced the same issue. Q4 TDS not included in ITR processing.

 

[HumorSimpson]

Yes correct. Check Twitter. Lot of people have faced the same issue. Q4 TDS not included in ITR processing.

Seems those devs don't know the diff between a calendar month and a financial month.

 

[DaDarkkNight]

Is your official name actually "AAM AADMI"?

 

[desiviru]

Is your official name actually "AAM AADMI"?

With name, you should also check, all values are dummy. So he has edited the html file itself or photo editing at its nearby best.

 

[DaDarkkNight]

With name, you should also check, all values are dummy. So he has edited the html file itself or photo editing at its nearby best.

So much effort for a thread? Here I still feel lazy to post a thread about various deals which will definitely benefit all users here

 

[aam.aadmi]

So much effort for a thread? Here I still feel lazy to post a thread about various deals which will definitely benefit all users here

It's effortless, if you know how 😏
Use Firefox. Right click ☛ Inspect (Q) ☛ Change text/picture

 

[aam.aadmi]

UPDATE: This issue seems to be widespread across the corporate IT sector. Just came across a notice sent out by TCS to it's employees:



TCS Employees Get Notice From Income Tax Department

TCS Employees Receive Notices From IT Department

 

[54R4NG]

UPDATE: This issue seems to be widespread across the corporate IT sector. Just came across a notice sent out by TCS to it's employees:

View attachment 68543

TCS Employees Get Notice From Income Tax Department

TCS Employees Receive Notices From IT Department

Similar emails being circulated in other corporates as well.

 

[desiviru]

What it meant is we are incapable and now IT filers should bear the brunt of filing rectification because our IT system from Infosys is good for nothing now. Infosys doing a right thing. Govt fails to provide them money they need to run systems and now they are leaving filers in lurch of these 26AS errors.

It seems like Infosys itself wants to get rid of this loss making Govt contract and soon TCS will be running IT portal in future.

Govt be like, Hum kisi kaam ke nahi par janta vehli hai jo baar baar hamari galtiyo ke liye bhugtey. 😡

 

[mayurk07]

i had a minor amount difference due to this glitch and didn’t have time to check details - so I paid the balance tax demand and replied to the notice online to close it - if Income tax acknowledges this issue and seeks to correct it later , can I now get the extra amount i just paid yesterday, back into my ac?

 

[nh124001]

i had a minor amount difference due to this glitch and didn’t have time to check details - so I paid the balance tax demand and replied to the notice online to close it - if Income tax acknowledges this issue and seeks to correct it later , can I now get the extra amount i just paid yesterday, back into my ac?

bhai itna kyo darte ho income tax valo se, issue dekh toh liya karo pehle

 

[Zacobite]

UPDATE: This issue seems to be widespread across the corporate IT sector. Just came across a notice sent out by TCS to it's employees:

View attachment 68543

TCS Employees Get Notice From Income Tax Department

TCS Employees Receive Notices From IT Department

lol.. it system made by infosys.. revenge!!!!

 

[teknofino]

This was finally admitted by the TDS Reconciliation Analysis and Correction Enabling System (TRACES) team

Any link for this from government sites?

 

[desiviru]

i had a minor amount difference due to this glitch and didn’t have time to check details - so I paid the balance tax demand and replied to the notice online to close it - if Income tax acknowledges this issue and seeks to correct it later , can I now get the extra amount i just paid yesterday, back into my ac?

Here I know some people having 8-10L incorrect demand standing from more than 10 years yet not fearing anyone because they have proofs. They just filed reply once. But in case there is refund, tax department will adjust. These cases I know not paying any advance tax and settle their record for a AY in March-July. They are managing things in a way they never have refund on cards to be adjusted. Living freely. So if you know you are right, no need to worry.