TDS in 26AS but Not in Your Return? ITAT Says You Can Still Claim It

-

🧾 Forgot to Claim TDS in Your ITR? Section 154 Can Still Save It

📖 2 min read ⚖️ Bangalore ITAT · 19-06-2026 📅 AY 2020-21

💭 Your employer deducted TDS. It's sitting right there in your Form 26AS. But you forgot to claim it in your return — and the department won't give you credit. Is that credit lost forever? The Bangalore ITAT says no.

In Vinayaka S Veerabasappa vs. ITO [2026] 190 taxmann.com 458 (Bang. Trib.), the Tribunal held that a genuine TDS claim can't be denied just because it was missed in the original return. Here's the journey of the case. 👇

STEP 1 · THE MISTAKE

While filing his original return under Section 139(1), the assessee omitted to claim credit for TDS deducted by his employers.

STEP 2 · THE FIX ATTEMPT

He filed a rectification application under Section 154 to claim the missed credit. But the AO passed an order sticking to the income computed under Section 143(1) — and continued to deny the TDS credit.

STEP 3 · THE KEY FACTS

Two facts weren't in dispute: the TDS was reflected in Form 26AS, and the income on which tax was deducted had already been offered in the relevant assessment year.

STEP 4 · THE VERDICT

The ITAT held that TDS credit cannot be denied merely because it wasn't claimed in the original return but was later claimed via a Section 154 petition. The matter was remanded to the AO for verification.

✅ The Condition Attached

The relief isn't automatic. The AO must verify the TDS claim and confirm that the corresponding income was actually admitted in the return. If found correct, the TDS credit shall be allowed.

✅ Key Takeaways

  • A TDS claim missed in the original return can still be claimed through a Section 154 rectification.
  • What matters: the TDS appears in Form 26AS and the related income was offered to tax in that year.
  • Credit can't be denied solely because it wasn't in the original return.
  • The AO will verify the claim and matching income before allowing credit — so keep your records ready.

📢 Missed a TDS credit in a past return? Share this ruling with your clients or tax advisor — and drop your questions on Section 154 rectifications in the comments below.

www.nrk.info

Comments

Post a Comment

Popular posts from this blog

Partner Remuneration is Business Income: Expenses (Including Depreciation) Allowed

-
Image
Partner Remuneration is Business Income: Expenses (Including Depreciation) Allowed Delhi ITAT Confirms Section 28(v) Classification and Upholds Consistency Rule. The Delhi Income Tax Appellate Tribunal (ITAT) has provided critical clarity for partners of professional firms, confirming that remuneration received is classified as Business Income , not 'Salary'. This classification under Section 28(v) of the Income-tax Act, 1961 , allows the partner to claim legitimate business expenditures against that income. The Dispute: CA Partner's Expense Claim The case involved an assessee, a chartered accountant partner, who received remuneration/salary from his partnership firm (Assessment Year 2018-19). The dispute arose over the treatment of expenses: Assessee's Action: Claimed business-related expenses, including depreciation on a motor car, again...
Read more

Deciphering GSTR-9 Table 8A: The Auto-Population Logic Explained

-
Image
Understanding the ITC Data Flow from GSTR-2B to the Annual Return. Table 8A of GSTR 9 is a crucial component of the Annual Return, as it captures the eligible Input Tax Credit (ITC) details for a specific financial year. This table is entirely auto-populated by the GST system based on the filed returns and statements. Understanding the precise time frame the system uses is essential for reconciling your books with the portal data. What is Table 8A of GSTR 9? Core Function: Table 8A of GSTR 9 for FY 2024-25 capture the details of documents / records pertaining to FY 2024-25 appearing in GSTR 2B . Therefore, this table essentially serves as the system's calculated total of eligible ITC available to the taxpayer as per GSTR-2B for the financial year. How is Table 8A Auto-Populated? The auto-population mechanism follows ...
Read more

Employee Cannot Be Penalized: TDS Credit Allowed Despite Employer's Default

-
Image
Delhi ITAT Upholds Tax Credit Based on Salary Slips, Overruling Form 26AS/Form 16 Denial. A recent ruling by the Delhi Income Tax Appellate Tribunal (ITAT) delivers crucial relief to employees facing denial of Tax Deducted at Source (TDS) credit due to non-compliance by their former employer. The Tribunal confirmed that the Revenue cannot deny tax credit to an employee if the employee can provide substantive evidence (like salary slips) showing that tax was actually deducted from their salary, regardless of the employer's failure to remit the tax or issue Form 16 . Background of the Dispute The Facts: The assessee (an ex-employee of TLPL) received gross salary and had TDS deducted under Section 192 . However, the employer neither provided Form 16 nor remitted the TDS amount to the government account. Disallowance: The assessee...
Read more