Your employer deducted ₹1,00,000 TDS, but only ₹65,000 shows up in your Form 26AS.
You file your ITR claiming the full ₹1,00,000 and suddenly, you receive a notice under Section 139(9) for a defective return due to mismatch ?
Don’t panic. You’re still entitled to the full credit under Section 205 of the Income-tax Act, which clearly states: if tax was deducted, the department can’t penalize the deductee just because the deductor didn’t deposit it.
To defend your claim, gather strong evidence like salary slips showing ₹1,00,000 deduction, Form 16 issued by the employer, bank statements reflecting net salary post-TDS, and any written employer communication. These will help you contest the notice with CPC or AO.
This is a common issue, especially in startups or defaulting employers. You’re not at fault – the law is on your side.
Courts have backed this too:
- Yashpal Sahni v. Rekha Hajarnavis (Bombay HC, 2007)
- Kartik Sonavane v. DCIT (Gujarat HC, 2021)
- Chintan Bindra v. DCIT (Delhi HC, 2023)
- Mukesh Sogani v. ACIT (ITAT Pune, 2023)
- Deepak Ruia v. DCIT (Kolkata ITAT, 2024)
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