I RECEIVED DEMAND NOTICE UNDER SECTION 143(1). IN REPLY I APPLIED FOR RECTIFICATION IN DEMAND UNDER SECTION 154 ENCLOSING COPY OF FORM 16 WHICH SHOWS TAX LIABILITY NIL. INCOME TAX DEPT. ASKED FOR ORIGINAL FORM 16 WHICH I SENT TO THEM. NOW 2 YEARS HAS PASSED BUT NO RECTIFICATION ORDER ISSUED. RECENTLY I WROTE LETTER TO ASSESSING OFFICER AGAIN ENCLOSING PROOF OF TDS BY EMPLOYER BY ENCLOSING COPY OF PAYSLIP & BANK STATEMENT FOR THE MONTH WHICH IS MISSING IN FORM 26AS OF TAX INFORMATION NETWORK & I HAD MENTIONED SECTION 205 OF IT ACT WHICH BARS RECOVERY FROM ASSESSE AGAIN. SINCE TDS RECOVERED BY EMPLOYER BUT SOME PORTION NOT DEPOSITED BY EMPLOYER TO INCOME TAX DEPT. INCIDENTALLY MY EMPLOYER IS CENTRAL GOVERNMENT( MINISTRY OF DEFENCE). WHETHER MY REPLY IS PROPER & HOW TO PROCEED FURTHER IF NO RECTIFICATION ORDER STILL ISSUED BY INCOME TAX DEPT.

Your reply is just. Also get in touch with your employer HR department (payrolls) to sought out this matter as soon as possible.

 Hi biplab1,

 In fact i have also received a similar demand notice and AY is mentioned as 2008. I had visited the ITO and asked them to clarify -

1. Whether the demand notice is for AY 2007-08 OR AY 2008-09 as the complete AY was not mentioned in the demand notice.

2. The reason for the demand notice as there was no due on me as per my FORM 16.

Both of the above query couldn't be resolved  by the IT officer. Though he searched all of his records but for me it was a just a waste of time.

Then i personally try to find the reason and find out that one of my TDS installment for a particular month is not getting reflected in my form 26 AS. hence, i deduce that the demand notice might be due to this reason as Tax credit is not being given to me for that particular month in which the employer had not deposited the TDS into the govt's account due to unknown reason.

Can you please let me know whether your demand notice also carries the AY something like mine - 2008. In such a case, what should i treat it ? 2007-08 OR 2008-09 !!!

Secondly,  how you come to know regarding the reason for your demand notice ? whether it was mentioned on the notice itself ? for mine case, as described above, no clarification is mentioned on the demand notice. 

Please post your reply for the above query to help me out.

Many Many Thanks in advance.