Income Tax Query Resolved: CPC has issued defective notice in case where TDS has been deducted on Cash Withdrawals u/s 194N (Code 94N,94NF-Non Filers)
CPC wants such CASH WITHDRAWALS to be disclosed as Receipts/Income in ITR otherwise TDS credit corresponding to such Cash withdrawals shall be denied!!
Below are the screenshot of Notice & the Income declared vis-a-vis details appearing in 26AS/TIS.
90 Lac Cash withdrawal is expected to be disclosed as Receipts/Income in ITR – which is not correct.
[All other incomes have been disclosed in ITR-Pic 2]
Income Tax Department Please look into the matter.
Please inform if anyone else is facing the same issue.
The issue regarding defective notice in ITRs due to TDS on cash withdrawal u/s 194N (Code 94N/94NF) has been resolved for the mentioned case
Procedure followed :-
– File a Revised ITR.
–System will throw Defective notice instantly. DISAGREE with defect and provide the Reason
[Sample reason attached]
– Additionally, raise a Grievance for the issue, so that you have a formal ticket number.
ITR got processed & refund got credited!!
Thanks Income Tax Department for resolving the issue. Hope this technical bug is fixed so that system doesn’t issue defective notice in such cases.
